The CBIC issued various Notifications dated 08.10.2024, to give effect to the interest waiver scheme under Sec. 128A, special procedure for rectification of order under 73 , 74 or 107 or 108, waiver of late fees to person liable to deduct TDS under 51 from the month of June 2021 onwards along with notifying the effective date for applicability of recommendations of 54th GST Council Meeting in respect to change in rate of goods and services, exemption of services, Reverse charge mechanism for specified services.
These Notifications are summarized as under:
A. Notification No. 21/2024-Central Tax: Notification specifies deadlines by which tax payments must be made in order to avail of the waiver of interest, penalty, or both u/s 128A:
As recommended in the 53rd Council Meeting and insertion of New Section 128A of the CGST Act vide Finance Act, 2024, for waiving of interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20.
Vide this Notification CBIC notifies dates up to which tax should be paid for waiver of interest/penalties under section 128A of CGST Act 2017. The Notification shall be effective from 01.11.2024.
- Registered persons who have received notices or statements or orders referred to in clause (a), (b), or (c) of Section 128A of the CGST Act – Last date is 31.03.2025.
- Registered persons who have received a notice u/s 74 in respect of the period mentioned in Section 128A(1) (For some specific cases) – 6 months from the date of redetermination order.
B. Notification No. 22/2024-Central Tax: Special procedure for rectification of certain specified orders issued under sections 73, 74, 107 or 108 of CGST Act: This notification provides a streamlined rectification process for addressing cases where the ITC, initially disallowed, is now permissible under the law, allowing taxpayers to avoid unnecessary litigation.
Process Summary:
Applicability: The procedure applies to registered persons against whom an order has been issued confirming a demand for wrongful availment of input tax credit (ITC) in violation of Section 16(4). In other words, case where ITC initially disallowed, is now available under Section 16(5) or Section 16(6), and the person has not filed an appeal against the original order.
Filing of Application: The registered person must file an application for rectification of the order electronically on the common portal. Such application for rectification is to be filed within six months from the date of the notification, and the officer must issue a rectified order within three months from the date of the application. Along with the application, the person must upload information in the prescribed Annexure A format.
Summary of Rectified Order: Once the rectification is made, the authority must upload a summary of the rectified order electronically in the relevant forms based on the section under which the original order was issued.
Opportunity for personal hearing: If the rectification process adversely affects the registered person, the principles of natural justice must be followed, ensuring that the person is provided a fair opportunity to be heard before any adverse decision is made.
C. Notification No. 23/2024-Central Tax: Waiver of late fees for FORM GSTR-7 (TDS return) u/s 51 from June 2021 onwards: The Notification shall be effective from 01.11.2024.
Vide this Notification, CBIC provides for the waiver of late fees under Section 47 of the CGST Act for registered persons required to deduct TDS for delays in filing FORM GSTR-7 returns, for the month of June 2021 onwards if they exceed twenty-five rupees for every day of delay. The total late fee payable under Section 47 for failure to file FORM GSTR-7 by the due date is capped at one thousand rupees.
In cases where no TDS is deducted, the late fee is completely waived. This notification offers significant relief to taxpayers by reducing penalties for filing delays, particularly in cases of nil returns.
To read the complete Notifications https://taxo.online/wp-content/uploads/2024/10/Central-Tax-Notification.pdf
D. Notifications relating to Rate of Goods and Services
I. Notification No. 05/2024-Central Tax (Rate): To notify change in rate of Goods
a. Cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab providing relief to patients – 5% (2.5% CGST + 5% SGST) (Earlier rate 12%)
b. Extruded or expanded savoury snacks, classified under HS 1905 90 30 – 12% (6% CGST + 6% SGST) (Earlier rate 18%).
c. Car and Motorcycle Seats: The GST rate for car seats, classified under HS 9401 – 28% (14% CGST + 14% SGST) (Earlier rate 18%).
The Notification shall be effective from 10.10.2024.
Similar Notification has been issued under UTGST (Rate)and Integrated Tax (Rate) vide Notification No. 05/2024- Union Territory Tax (Rate) and Notification No. 05/2024- Integrated Tax (Rate) respectively.
II. Notification No. 07/2024-Central Tax (Rate): To notify change in rate of services – Transport of passengers by helicopters
Vide this Notification CBIC notified GST rate for transportation of passengers by helicopters services on sharing basis to be 5% (2.5% CGST + 2.5% SGST)
Provided input tax charged on goods used in supplying the service has not been taken. The Notification shall be effective from 10.10.2024.
Similar Notification has been issued under UTGST (Rate)and Integrated Tax (Rate) vide Notification No. 07/2024- Union Territory Tax (Rate) and Notification No. 07/2024- Integrated Tax (Rate) respectively.
III. Notification No. 08/2024-Central Tax (Rate): To notify services exempted from GST
a. Application fees/ Connection rental charges for electricity connection: Supply of services such as application fees for providing electricity connection, rental charges against electricity meter, testing fees for meters/ transformers/capacitors, labour charges from customers for shifting of meters/service lines, charges for duplicate bills etc. which are incidental, ancillary or integral to the supply of transmission and distribution of electricity by transmission and distribution utilities to their consumers, when provided as a composite supply.
b. Research and development grants from private or public sector to recognised educational institutions: R&D grant to three categories of research institution, college or university will be exempted from GST. These include recognition under State laws, Central Laws or one which has got exemption under Income Tax. The exemption will be available to both government as well as private institutions and there will be no threshold. Now, “past demands to be regularised on ‘as is where is’ basis.
The Notification shall be effective from 10.10.2024.
Similar Notification has been issued under UTGST (Rate) and Integrated Tax (Rate) vide Notification No. 08/2024- Union Territory Tax (Rate) and Notification No. 08/2024- Integrated Tax (Rate) respectively.
c. Import of services by foreign airline companies: Vide Notification No. 08/2024- Integrated Tax (Rate), CBIC exempted Import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration.
This GST exemption is applicable provided that:
- Indian establishment of the foreign airline company is required to pay GST at the applicable rates on the transport of goods and passengers, as per the GST law
- Certification is obtained from the Ministry of Civil Aviation
- Reciprocal treatment is confirmed, ensuring that Indian airlines are not subject to similar taxes by the foreign country for identical services
E. Notification relating to Reverse Charge Mechanism (RCM)
I. Notification No. 06/2024- Central Tax (Rate): Supply of metal scrap by an unregistered person to a registered person
The 54th GST Council meeting held on 09.09.2024, has proposed reverse charge mechanism will be applied to the supply of metal scrap from unregistered to registered persons. Suppliers must register once they surpass the threshold limit, while recipients will be responsible for paying tax under RCM. Additionally, a TDS of 2% will be imposed on the supply of metal scrap in B2B transactions.
Vide this Notification, CBIC amended the earlier notification No. 4/2017-Central Tax (Rate) from June 28, 2017 by adding a new entry No.8 to the table in the original notification, after S. No. 7. This brings the metal scraps of the Chapters 72, 73, 74, 75, 76, 77, 78, 79, 80 or 81 under its ambit. CBIC has notified effective date to be 10.10.2024.
Similar Notification has been issued under UTGST (Rate)and Integrated Tax (Rate) vide Notification No. 06/2024- Union Territory Tax (Rate)and Notification No. 06/2024- Integrated Tax (Rate) respectively
II. Notification No. 09/2024- Central Tax (Rate): Service related to renting of any property other than residential dwelling
The 54th GST Council meeting held on 09.09.2024, has proposed Renting of commercials properties brought under reverse charge mechanism, provided by unregistered person to a registered person.
Vide this Notification, CBIC notified the effective date as 10.10.2024, to be date from which Supply of Service related to renting of any property other than residential dwelling by any unregistered person to any registered person , brought under Reverse Charge Mechanism
Similar Notification has been issued under UTGST (Rate)and Integrated Tax (Rate) vide Notification No. 09/2024- Union Territory Tax (Rate)and Notification No. 09/2024- Integrated Tax (Rate) respectively.
To read the complete Rate Notifications https://taxo.online/wp-content/uploads/2024/10/Central-TaxRate.pdf
https://taxo.online/wp-content/uploads/2024/10/Central-Tax-rate-2.pdf
