GST Council Meeting: GST Council extends GSTR-4 submission to June 30 for FY2024-25, FM Sitharaman says

Union Finance Minister Nirmala Sitharaman at the end of the 53rd meeting of the GST Council said the GST Council has decided to extend GSTR-4 submission to June 30 for FY2024-25 onwards. Besides, the Council recommended waiving interest and penalties for demand notices issued under sector 73 of the GST Act. FM Sitharaman said for 2017-18, 2018-19, 2019-20 for demand notices, interest and penalty will be waived off if tax is paid by March 31, 2025.

"The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation," FM Sitharaman said.

Other highlights of the meeting are:

> GST Council recommends insertion of functionality, by a form - GSTR-1A to add particulars of the current tax period in case it was missed in reporting
> To reduce govt litigation, a monetary limit has been recommended of Rs 20 lkh for GST appelete tribuanal: FM Sitharaman
> Council recommends insertion of a functionality, by a form - GSTR-1A to add particulars of current tax period incase it was missed in reporting
> New monetary limits are 20 lakhs for GST appelletes, 1 cr for HC
> A uniform rate of 12% on milk cans (steel, aluminum) has been recommended.
> Council prescribed 12% rate on all carton boxes.
> All types of sprinklers, including fire sprinklers will attract 12% rate.
> Services provided by Railways like battery operated vehicles, intra-railway services being exempt from GST.

"Services provided by the Indian Railways to common man, sale of platform tickets, facility of retiring rooms and waiting rooms, battery operated car services are being exempted from GST. Further intra-railway supplies are also being exempted," FM said.

> Service by way of hostel accommodation (non-educational) to be exempt, on the basis of atleast 3 months of continuity, council exempts up to Rs 20,000 per month per person.

"Service by way of hostel accommodation is presently not exempted, which are provided to students if they are outside of educational institutions. If they are within the educational institutions, then they are already exempted. Hostels which are for students which are within educational institutions are already exempted. Now hostels which are for students but are not in educational institutions are also getting exempted," said Sitharaman.

Petrol, diesel under GST ambit

"The intent of Centre is clear to bring petrol, diesel under GST, no amendment needed for it. States need to come on board and decide the gst rate on fuel. GOM on rate rationalisation to give presentation in August GST council meet," FM Sitharaman said.

The GST Council meeting was attended by the Union Finance Minister, Chief Ministers of Goa and Meghalaya; Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha; besides Finance Ministers of States & UTs (with legislature) and Senior officers from Union Government & States are also attending the meeting.

Ankur Gupta, Practice Leader - Indirect Tax at SW India said, "The GST council has announced an exemption on interest and penalties for demand notices issued under Section 73, provided the taxpayer settles the demand before 31st March 2025. This initiative should reduce financial burden of taxpayers who are willing to rectify their tax dues. Considering the value of interest has been increased more than the tax amount for matters pertaining to FY 2017-18 to FY 2019-20, therefore,  taxpayers can take advantage of this exemption to clear their outstanding dues without the additional burden of interest and penalties in cases where the grounds of appeal are not strong or the benefit provided under this exemption is substantial."