The 54th meeting of the GST Council on September 9 is likely to announce the GST amnesty scheme, rate rationalisation of certain goods and services, simplification, and improved compliance.
Reetu | Sep 9, 2024 |
Implementation of GST Amnesty Scheme to be announced in Today’s GST Council Meeting?
The 54th meeting of the Goods and Services Tax (GST) Council on September 9 is likely to announce the GST amnesty scheme, rate rationalisation of certain goods and services, simplification, and improved compliance.
In response to a post on Twitter about the timeline for retrospective implementation of relief under Section 16 (4) of the Central GST Act (CGST), the Central Board of Indirect Taxes and Customs (CBIC) clarified that the new provisions governing the time limit to avail input tax credit will not take effect until after September 9, 2024, i.e., the 54th GST Council meeting.
“Many taxpayers have gotten notices that they have not claimed the appropriate ITC (input tax credit) by the end of the month, and as a result, they have come under scrutiny; these notices amount to thousands of crores. The deadline for claiming ITC was extended at the previous meeting. The details will be finalised during this council meeting. This announcement will especially benefit these taxpayers,” said a person familiar with the situation on the condition of anonymity.
Following the 53rd GST Council meeting on June 22, the finance ministry issued a statement that read: “The time limit to avail input tax credit w.r.t. any invoice or debit note under Section 16(4) of the CGST Act, through any GSTR-3B return filed up to 30.11.2021 for FY 2017-18, 2018-19, 2019-20, and 2020-21, may be deemed to be 30.11.2021.”
This means that businesses with invoices or debit notes dated July 1, 2017 (the commencement date of GST implementation) can take advantage of the extended ITC claim deadline.
The CBIC’s clarification stated these regulations would be enforced following the council’s recommendations. This delay provides for proper cooperation between the central government and the states, as states must also change their State GST (SGST) laws to comply with the new laws.
Tax experts believe that the council’s priority should be to simplify compliance procedures and clarify difficult areas in order to instill trust in taxpayers.
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