GST Council likely to reduce TCS rate for E-Commerce Operators

The 53rd GST Council Meeting is going to be held on 22nd June 2024 in New Delhi, as the new government assumes charge.

In this council meeting, the council possibly will reduce the TCS rate collected for the supplies made by the E-Commerce Operators. It is expected that the council will reduce the TCS rate from the present 1% to 0.5 %.

Various other agendas are also proposed before the GST Council:

Rationalize Pre-Deposit Amount

GST Council is likely to rationalize the pre-deposit amount for entering the first and second stages of appeal. The rate of pre-deposit of the tax could be lowered to 7.5%. Council likely to propose pre-deposit for filing an appeal with appellate authority at 10% of disputed tax or a maximum of Rs.20cr each in CGST and SGST and Rs.40 cr for IGST.

Apart from this, online gaming companies are also hoping for a review of the 28% goods and services tax (GST) on the sector.

Clarification for Foreign Airlines

The Directorate General of GST Intelligence (DGGI) has sent tax notices to numerous foreign airlines and shipping lines; the Council is expected to provide clarification on this matter. According to the DGGI, the local business imports a number of services from the parent office for which no GST has been paid.

New GSTR-1A Form

Another expected update is that the GST Council might launch a new form GSTR-1A to allow taxpayers to amend or add records within the same month/ same period after filing GSTR-1 and before filing GSTR-3B. This will pave the way for the Revision of GST Returns and will be a huge relief if happens.

Form GSTR-1A will provide, the feature of flexibility in the amendment. Currently, taxpayers cannot modify GSTR-1 in the same period after it has been filed. Any amendments or missed records must be reported in the GSTR-1 of the next return period.

The amended liability will be automatically populated in GSTR-3B, allowing for proper liability discharge. Amendments or missing records can be submitted in GSTR-1A prior to filing GSTR-3B, which supports efficient reporting.