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Recommendations of the 53rd GST Council
Meeting
The 53rd GST Council Meeting brought
forth a series of significant recommendations aimed at refining and simplifying
the Goods and Services Tax (GST) framework in India. Here are the key
highlights:
1. Waiver of Interest and Penalties:
The GST Council recommended waiving
interest and penalties for demand notices issued under Section 73 of the CGST
Act for the fiscal years 2017-18, 2018-19, and 2019-20. This applies to cases
not involving fraud, suppression, or wilful misstatement, provided the full tax
demanded is paid by March 31, 2025.
2. Extension of Time Limit for Input Tax
Credit:
The Council suggested that the time
limit for availing input tax credit (ITC) concerning any invoice or debit note
under Section 16(4) of the CGST Act be deemed as November 30, 2021, for the
fiscal years 2017-18 to 2020-21. This applies to any GSTR-3B return filed up to
November 30, 2021.
3.
Appeal Filing Limits to Reduce Litigation:
To reduce litigation, the Council
recommended setting monetary limits for the filing of appeals:
- Rs. 20 lakh for the GST Appellate
Tribunal,
- Rs. 1 crore for the High Court,
- Rs. 2 crore for the Supreme Court.
4. Reduction in Pre-Deposit for Appeals:
The quantum of the pre-deposit
required for filing appeals under GST has been recommended for reduction,
easing the financial burden on taxpayers.
5.
Amendment for Filing Appeals
The Council proposed amending the
provisions of the CGST Act to specify that the three-month period for filing
appeals in the GST Appellate Tribunal will commence from a date to be notified
by the Government.
6.
Interest on Delayed Returns
To ease taxpayers' interest burden,
the Council recommended that no interest under Section 50 of the CGST Act be
levied on the amount available in the Electronic Cash Ledger (ECL) on the due
date of filing the return, even if the return is filed late.
7.
Sunset Clause for Anti-Profiteering Applications:
The Council proposed a sunset clause
from April 1, 2025, for receiving any new applications for anti-profiteering.
8.
Compensation Cess Exemption for SEZ Imports:
An exemption from the Compensation
Cess was recommended for imports in Special Economic Zones (SEZ) by SEZ
units/developers for authorized operations, effective from July 1, 2017.
9.
Adjustments in GST Rates:
The Council recommended a 12% GST
rate on:
- Milk cans (steel, iron, aluminium),
- Cartons, boxes, and cases of both
corrugated and non-corrugated paper or paperboard,
- Solar cookers (whether single or
dual energy source),
- Sprinklers including fire water
sprinklers.
10.
Exemptions for Railway Services:
Certain services provided by Indian
Railways to the common man, along with intra-railway supplies, were recommended
for exemption.
11.
Relief on Accommodation Services:
Exemptions related to accommodation
services were proposed, providing relief to students and working professionals.
12.
Biometric Aadhaar Authentication:
The Council recommended rolling out
biometric-based Aadhaar authentication for registration applicants on a
pan-India basis in a phased manner.
These recommendations are set to
streamline processes, reduce litigation, and provide substantial relief to
taxpayers, ensuring a more efficient and taxpayer-friendly GST regime.
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