Important GST changes from 10 Oct 2024 | New GST Notifications

Summary

The video discusses important GST amendments following the 54th GST Council meeting and Budget 2024, focusing on key notifications. A new Section 128A offers waivers on interest and penalties if taxes for the period from July 1, 2017, to March 31, 2020, are paid by March 31, 2025. Additionally, changes in Sections 73 and 74 related to tax determination and notifications regarding ITC claims, penalties, and late fees are covered. Amendments related to metal scrap transactions and commercial property rentals are also highlighted, effective from October 2024.

Takeaways

• 📝 GST amendments from the 54th GST Council meeting have been implemented, with key notifications issued on October 8, 2024.
• 📅 A crucial date to note: March 31, 2025. Pay your tax dues before this date to avail interest and penalty waivers under Section 128A.
• 💡 Section 128A offers a waiver of interest and penalties for tax demands under Section 73 if the tax is paid for the period between July 1, 2017, and March 31, 2020.
• ⏳ If the tax determination shifts from Section 74 to Section 73, you must make the payment within six months of receiving the revised tax order to get the waiver.
• 📄 Notification No. 22/2024, dated November 8, 2024, extends the time limit for claiming ITC under Section 16 for the periods 2017-18, 2018-19, and 2019-20.
• 🖥️ Rectification applications for past orders must be filed electronically within six months from October 8, 2024, under the new GST procedure.
• ⚖️ TDS returns (GSTR-7) now have a penalty waiver if no TDS was deducted. The waiver applies from November 1, 2024, for government entities.
• 🔧 Changes in reverse charge mechanism (RCM): From October 10, 2024, registered recipients of metal scrap from unregistered suppliers must pay GST under RCM.
• 🏢 Commercial property rentals from unregistered landlords to registered tenants now attract GST under RCM, effective October 10, 2024.
• 📢 These amendments and notifications cover key GST changes like ITC claims, TDS, RCM, and tax payment deadlines, which businesses should adhere to.

Q & A

What is the significance of the GST Notification No. 21/2024?

GST Notification No. 21/2024, issued on 8th October 2024, introduces a new Section 128A, which provides relief for taxpayers who received notices or orders under Section 73 for the period from 1st July 2017 to 31st March 2020. If taxpayers pay the full tax amount before 31st March 2025, they will be exempted from interest and penalties.

What is the deadline for availing the interest and penalty waiver under Section 128A?

The deadline for availing the waiver of interest and penalties under Section 128A is 31st March 2025. If the full tax amount is paid before this date, taxpayers will not be liable to pay any interest or penalties.

How does Section 128A provide relief for taxpayers who received notices under Section 74?

While Section 128A focuses on waiving penalties and interest for notices under Section 73, it also addresses cases where the department issued notices under Section 74. If the department re-determines the tax liability under Section 73 after issuing a Section 74 notice, taxpayers must pay the tax within six months of the re-determined order to receive the waiver.

What is the role of Notification No. 22/2024 in relation to ITC claims?

Notification No. 22/2024, issued on 8th November 2024, allows relief for taxpayers who missed the deadline to claim ITC (Input Tax Credit) in previous returns. It applies to taxpayers who received notices related to ITC for fiscal years 2017-2021. If they filed their ITC claim by 30th November 2021, they are eligible for this relief.

What is the procedure for rectifying GST orders under the new amendments?

Taxpayers who need to rectify their GST orders can do so electronically through the GST portal. They must file a rectification request within six months of the notification's date (8th October 2024). The request should be filed under the 'Application for Rectification of Order' section, and all supporting documents, including Annexure A, must be attached.

What is the importance of Annexure A in the rectification process?

Annexure A is a mandatory document that taxpayers must attach when applying for rectification of GST orders. It contains the necessary details and justifications for the rectification, based on the notifications and provisions outlined in the GST Act.

What amendments have been made to the TDS provisions under GST?

Under the new amendments, if no TDS (Tax Deducted at Source) is applicable, taxpayers can file their GSTR-7 return without incurring any late fees. This waiver will be effective from 1st November 2024, benefiting government entities and others responsible for TDS deductions.

How does the new GST amendment affect the sale of metal scrap by unregistered persons?

According to Notification No. 6/2024, metal scrap sold by unregistered persons to registered persons will now fall under Reverse Charge Mechanism (RCM). The registered person receiving the metal scrap will be responsible for paying the GST, effective from 10th October 2024.

What changes have been introduced for the rental of commercial property under the new GST rules?

Under Notification No. 9/2024, if an unregistered person rents out commercial property to a registered person, the registered tenant will be liable to pay GST under the Reverse Charge Mechanism (RCM). This amendment takes effect from 10th October 2024.

What should taxpayers do if they have multiple orders under different sections of the GST Act?

If taxpayers have multiple orders under different sections (such as Section 73, 74, 107, or 108), they must file separate rectification applications for each order. This ensures that each case is addressed properly according to the specific provisions outlined for each section.