GST Council waives interest, penalty on past tax demands to ease compliance | Economy & Policy News
Union Finance Minister Nirmala Sitharaman chairs the 53rd GST Council meeting, in New Delhi, Saturday, June 22, 2024. (PTI Photo/Kamal Singh)
The Goods and Services Tax (GST) Council in its 53rd meeting on Saturday has approved several compliance measures, aiming at reducing tax litigation and enhancing ease of business across the sector.
The Council, among several measures, waived interest and penalty for tax demands paid under notices issued under Section 73, since the financial year 2017-18.
“The Council at its 53rd meeting has taken key decisions on trade facilitation, easing compliance,and easing burden of taxpayers,” said the Union Finance Minister Nirmala Sitharaman who chaired her first Council meeting under the NDA-led government.
#WATCH | Delhi: On the 53rd GST Council Meeting, Union Finance Minister Nirmala Sitharaman says “I want to reassure the assessees that our intent is to make the GST assessee’s life easier. We are working towards less and less compliance. I want to underline the fact, on behalf of… pic.twitter.com/gABjYGNFuO
— ANI (@ANI) June 22, 2024
Some of the agenda items couldn’t be taken up due to a paucity of time and could be addressed in the next council meeting post-budget or before the end of August, FM Sitharaman said.
The Council reconstituted the group of ministers (GoM) on rate rationalisation and asked them to give a status report on the rate rejig in the next council meeting.
Among key decisions, the Council approved the PAN-India implementation of biometric-based registration in a phased manner. The move would help weed out fake registrations and fake credits.
It has also given the nod to one of the key amendments in the Central GST Act under Section 11A, which could overrule retrospective tax demands arising in various sectors. The amendment will give power to both the centre and states to waive off the GST not paid due to ambiguity of law or on account of “general practices” consistently being followed by the businesses.
The Council also clarified that a corporate guarantee of 1 per cent on 18 per cent is exempt for businesses where full input tax credit is available.
Apart from this, the council has introduced a sunset clause to anti-profiteering legislation to deal with all such matters.
The Council also recommended prescribing a uniform rate of 12 per cent on all milk cans made of steel, iron, or aluminium, irrespective of their use.
While announcing the measures, the FM assured GST assessees that the government is working towards new compliance.
She underlined that only 1.96 per cent of all active tax assessees have been sent tax notices from Central GST till December 31, 2023.
“The first meeting after the formation of the new Government sets the tone for ensuring measures to ease industry concerns. Sunset clause to anti profiteering provisions, amnesty for initial years, allowing amendment of outward supplies, corporate guarantee clarification were the major highlights. Come August, it’ll be interesting to see if similar sentiment continues, specifically on rate rationalisations and clarifications” said Abhishek Jain, Indirect Tax Head & Partner, KPMG.
First Published: Jun 22 2024 | 8:32 PM IST
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