Key Recommendations and Circulars issued by 53rd GST Council meeting

Key Recommendations and Circulars issued by 53rd GST Council meeting On the Basis of recommendations of the GST Council, 16 Circulars have been issued

Key Recommendations made by 53rd GST council meeting

1. Waver of interest and penalty on demand notices issued under section 73 for Fy 17-18, 18-19, 19-20. Applicable in cases where tax is paid entirely by March 2025.
2. Time limit to avail ITC u/s16(4) filed till 30th Nov instead of Oct For FY 1718 1819 1920 2021
3. ⁠Monetary limit for filing appeal by tax dept. of 20 lakh for tribunal; 1cr for HC and 2 cr for SC.
4. ⁠Maximum amount of pre deposit for filing appeal before appellate authority reduced from 25 cr to 20 cr each for cgst and sgst.
5. Pre deposit for filing appeal before tribunal reduced to 20% and 20 cr each for cgst and sgst.
6. Amendment in law for providing that time limit for filing appeal before tribunal will start from the date government notifies.
7. Extension of time limit to file GSTR 4 till 30 June.
8. ⁠Interest won’t be charged for amount available in cash ledger at time of filing 3B.
9. Insertion of new Form GSTR 1A to allow correction in GSTR 1. It will be allowed to file it before filing 3B.
10. ⁠Bio metric based Aadhar authentication on PAN India basis in a phased manner.
11. Clarification issued on various topics. Few of them are - 12% tax rate for milk can; uniform GST rate of 12% on all carton boxes; clarification on all types of sprinklers will attract 12% and past practice to be as is; 12% rate on all solar cases; services by railways, platform ticket, other services are exempt; service of hostal accommodation outside of educational institutions made exempt with conditions.

List of Circulars

On the Basis of recommendations of the GST Council, 16 Circulars have been issued on various issues. Below is the list of Circulars issued:

1. Circular no. 207/1/2024 - GST dated June 26, 2024 : Fixing monetary limits for filing appeals or applications before GSTAT, HC and SC.
2. Circular no. 208/2/2024 - GST dated June 26, 2024 : Special procedure for the manufacturers of the specified commodities as per Notification No. 04/2024 - Central Tax dated 05.01.2024.
3. Circular no. 209/3/2024 - GST dated June 26, 2024 : Clarification on Section 10(1)(ca) - Pos in case of goods supplied to unregistered persons.
4. Circular no. 210/4/2024 - GST dated June 26, 2024 : Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit.
5. Circular no. 211/5/2024 - GST dated June 26, 2024 : Clarification on time limit under Section 16(4) of CGST Act, 2017 in respect of RCM supplies received from unregistered persons.
6. Circular no. 212/6/2024 - GST dated June 26, 2024 : Mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers.
7. Circular no. 213/7/2024 - GST dated June 26, 2024 : Clarification on the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company.
8. Circular no. 214/8/2024 - GST dated June 26, 2024 : Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value.
9. Circular no. 215/9/2024 - GST dated June 26, 2024 : Clarification on taxability of salvage/ wreck value earmarked in the claim assessment of the damage caused to the motor vehicle.
10. Circular no. 216/10/2024 - GST dated June 26, 2024 : Clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023.
11. Circular no. 217/11/2024 - GST dated June 26, 2024: Entitlement of ITC by the insurance companies on the expenses incurred for repair of motor vehicles in case of reimbursement mode of insurance claim settlement.
12. Circular no. 218/12/2024 - GST dated June 26, 2024: Clarification regarding taxability of the transaction of providing loan by an overseas affiliate to its Indian affiliate or by a person to a related person.
13. Circular no. 219/13/2024 - GST dated June 26, 2024: Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the CGST Act, 2017.
14. Circular no. 220/14/2024 - GST dated June 26, 2024: Clarification on place of supply applicable for custodial services provided by banks to Foreign Portfolio Investors.
15. Circular no. 221/15/2024 - GST dated June 26, 2024: Clarification on time of supply in respect of supply of services of construction of road and maintenance thereof of National Highway Projects of National Highways Authority of India (NHAI)in Hybrid Annuity Mode (HAM) model.
16. Circular no. 222/16/2024 - GST dated June 26, 2024: Clarification on time of supply of services of spectrum usage and other similar services under GST.

Key Recommendations and Circulars issued by 53rd GST Council meeting, Circulars issued on the basis of recomendations of 53rd gst council meeting