#gst council meet 2024

[uniqueeval]

GST Council meet: TMC's O'Brien urges Sitharaman to withdraw 18% GST on insurance premiums

Derek O’Brien demanded that the GST on health and life insurance premiums be withdrawn. File | Photo Credit: The Hindu TMC leader Derek O’Brien has urged Finance Minister Nirmala Sitharaman to “urgently review” and withdraw the 18% GST on health and life insurance premiums during the upcoming GST Council meeting. Mr. O’Brien, in a letter dated August 24, demanded that the GST on health and life…

[rightnewshindi]

GST Collection: अगस्त 2024 में 1.75 लाख करोड़ रहा जीएसटी कलेक्शन, जानें कब होगी जीएसटी काउंसिल की बैठक

GST Collection in August 2024: जीएसटी कलेक्शन में इजाफा देखने को मिला है। सरकार की तरफ से रविवार को आंकड़ा जारी किया गया है। सरकार ने दी जानकारी में बताया कि अगस्त 2024 के दौरान कुल जीएसटी कलेक्शन 1.75 लाख करोड़ रुपये रहा है। सालाना आधार पर जीएसटी कलेक्शन में 10 प्रतिशत का इजाफा हुआ है। बता दें, पिछले साल अगस्त में माल और सेवा कर (जीएसटी) राजस्व 1.59 लाख करोड़ रुपये था, जबकि इस साल जुलाई में यह…

[hexahomee]

Understanding the New GST Rate on Used Cars: What You Need to Know

The Goods and Services Tax (GST) Council has recently announced a significant change in the taxation of used cars, setting a uniform GST rate of 18% on all used vehicles, including electric vehicles (EVs). This decision, made during the council's meeting on December 21, 2024, aims to simplify the tax structure and eliminate discrepancies that previously existed in the taxation of second-hand vehicles.

The New GST Framework

Previously, the GST rate for used cars varied depending on several factors, including engine size and type of vehicle. For instance, petrol vehicles with engines over 1200 cc and certain diesel vehicles were already subject to an 18% GST. However, many smaller used vehicles and EVs were taxed at a lower rate of 12%. The recent change means that all used cars sold by registered businesses will now be taxed uniformly at 18%, which applies only to the profit margin—the difference between the selling price and the depreciated purchase price.

Who is Affected?

It's important to note that this new GST rate applies primarily to transactions conducted by registered dealers or businesses. Individuals selling their used cars privately will not be affected by this change; they will continue to operate under the existing tax framework, which does not impose GST on private sales. This means that casual sellers can still sell their vehicles without incurring additional tax burdens.

Implications for Consumers and Dealers

The increase in GST for used cars has raised concerns among stakeholders in the automotive market. Many experts believe that this hike could lead to a slowdown in sales within India's substantial pre-owned car market, valued at approximately $32 billion. The higher tax rate may deter potential buyers who are already navigating a market influenced by fluctuating prices and economic conditions.Moreover, while new EVs enjoy a lower GST of 5% to encourage adoption, the increase to 18% for second-hand EVs could diminish their appeal in the resale market. This could potentially slow down the transition towards electric mobility as consumers might hesitate to invest in used EVs due to higher taxation.

Conclusion

In summary, the introduction of an 18% GST on all used cars sold by businesses marks a significant shift in India's tax landscape for automotive sales. While this move simplifies the tax structure, it also poses challenges for both dealers and consumers. As stakeholders adjust to these changes, it will be essential to monitor how this affects sales trends in the used car market moving forward. For individuals looking to sell or buy used cars, understanding these new regulations will be crucial in navigating their transactions effectively.-Written By Hexahome

[babatax]

GST Rate For Old Cars And Eletric Vehicles - 18% GST

    GST rates for old cars: Under the direction of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman, the 55th GST Council took place at Jaisalmer, Rajasthan, on December 21st 2024. In addition to senior officials from the Ministry of Finance & States/UTs, the meeting was attended by the chief ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha; the deputy chief…

[nwnews24]

GST Council Meet 2024: शुरू हो गई बैठक, इंश्योरेंस पॉलिसी समेत कई चीजों के कम हो सकते हैं टैक्स

[indianexpalert]

GST Council postpones decision to cut tax on life and health insurance

Dec 21, 2024 01:47 PM IST 18% GST will continue on premiums paid for policies with health insurance cover of over ₹5 lakh. The GST Council on Saturday postponed a decision on cutting tax rate on life and health insurance premiums, officials said. Revenue Secretary Sanjay Malhotra attends a GST Council meeting with Union Finance Minister Nirmala Sitharaman at Vigyan Bhawan, in New Delhi. The…

[businessviewpointmag]

GST Hike Proposed for Tobacco, Aerated Drinks to 35%: GoM Report

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Source: zeebiz.com

GoM Proposes New Tax Rate for “Sin Goods”

The Group of Ministers (GoM) on GST rate rationalization has recommended increasing the Goods and Services Tax (GST) on aerated beverages, cigarettes, and other tobacco products from the current 28% to 35%. This significant adjustment is aimed at bolstering revenue collection and aligning tax rates with broader fiscal objectives, according to a report by news agency PTI.

Chaired by Bihar Deputy Chief Minister Samrat Choudhary, the GoM convened on Monday to finalize the proposed rate changes. Apart from revising taxes on “sin goods,” the GoM also reviewed the GST structure for apparel and other categories. Under the proposed framework, items priced up to ₹1,500 would continue to attract a 5% tax, while goods priced between ₹1,500 and ₹10,000 would remain taxed at 18%. Products exceeding ₹10,000 would incur a 28% tax.

The Group of Ministers’s recommendations encompass 148 items, reflecting an ambitious effort to optimize GST collections. The report is slated for presentation to the GST Council on December 21, 2024. Comprising Union and state finance ministers, the council will determine the final course of action.

Current GST Framework and Proposed Adjustments

Under the existing GST system, goods are categorized into four primary slabs: 5%, 12%, 18%, and 28%. Essential items are exempt or taxed at the lowest slab, while luxury and demerit goods, such as cars, washing machines, tobacco, and aerated beverages, fall under higher tax brackets. These items also attract an additional cess, further increasing their tax burden.

If implemented, the proposed 35% rate would mark a departure from the current structure, potentially creating a fifth tax slab. This measure, the GoM suggests, would effectively target demerit goods while leaving the existing slabs untouched. “The introduction of the 35% rate aims to streamline tax collection on goods considered harmful, such as tobacco and aerated drinks,” an official was quoted as saying.

The GoM also discussed extending its mandate to allow for periodic reviews of GST rates. This would ensure a dynamic approach to tax adjustments based on economic trends and revenue needs.

Earlier Proposals and Broader Impact

The Group of Ministers’s latest recommendations follow a series of rate-related proposals from its October meeting. These included reducing GST on packaged drinking water (20 liters and above) from 18% to 5%, bicycles costing less than ₹10,000 from 12% to 5%, and exercise notebooks from 12% to 5%. Conversely, luxury items such as shoes priced above ₹15,000 per pair and wristwatches exceeding ₹25,000 were proposed to face higher taxes, moving from 18% to 28%.

As the council deliberates on these recommendations, the proposed changes underscore the government’s dual focus on maximizing revenue and discouraging the consumption of harmful goods. If approved, the new tax structure could reshape the GST landscape and influence market dynamics, particularly for luxury and demerit goods.

Catch the latest updates at Business Viewpoint Magazine

[jaagrukbharat]

What To Know About The 53rd GST Council Meeting? Major Changes, Announcements And Benefits

The  Finance Minister of India, GST Council Chairman Nirmala Sitharaman, and State Finance Ministers attended the 53rd GST Council meeting held on Saturday, June 22, 2024. The meeting discussed and announced several crucial measures, along with changes in the goods and service rate.

[taxationplanning]

GST Amnesty Scheme 2024: GSTN Issues Advisory

About GST Amnesty Scheme 2024 For reducing tax disputes and to provide big relief to the taxpayers, GST Council in its 53rd meeting had recommended GST Amnesty Scheme 2024 for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18,…

[finverto]

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes. The 53rd GST Council meeting, held on June 22, 2024, in New Delhi, marked the first meeting after the 2024 Lok Sabha elections. Chaired by the newly appointed Union Finance Minister, Nirmala Sitharaman, the meeting addressed several critical issues to streamline GST compliance and enhance the tax structure. This blog provides a comprehensive overview of the meeting’s highlights, updates, outcomes, and the latest news. GST Registration.

Key Decisions and Updates from the 53rd GST Council Meeting

Ease of Compliance Burden for Taxpayers

1. Changes in GSTR-1 Filing:

Introduction of GSTR-1A: Taxpayers can now add or amend particulars in GSTR-1 of the current tax period/IFF for the 1st and 2nd month of the quarter before filing GSTR-3B.

Reporting B2C Supplies: The threshold for reporting Business-to-Consumer (B2C) interstate supplies invoice-wise in Table 5 of GSTR-1 has been reduced from ₹2.5 lakh to ₹1 lakh.

2. GSTR-4 Due Date Revised:

The due date for filing GSTR-4 by composition taxable persons has been extended from April 30 to June 30, starting from the fiscal year 2024-25.

3. TCS Rate Reduction:

The Tax Collected at Source (TCS) rate for Electronic Commerce Operators (ECOs) has been reduced from 1% to 0.5% (0.25% each under CGST and SGST/UTGST or 0.5% under IGST).

4. Compulsory Filing of GSTR-7:

GSTR-7 must be filed mandatorily even if no Tax Deducted at Source (TDS) is deducted. No late fee will be charged for nil filing. GST Filing.

5. GSTR-9/9A Filing Exemption:

Taxpayers with an aggregate annual turnover up to ₹2 crore will be exempt from filing the annual return in GSTR-9/9A for the fiscal year 2023-24.

Modifications to Sections and Rules

1. Modification to Section 16(4):

The time limit to avail Input Tax Credit (ITC) for invoices or debit notes in any GSTR-3B filed up to November 30, 2021, is deemed to be November 30, 2021. This applies retrospectively from July 1, 2017. Section 16(4) shall be relaxed for returns filed within 30 days of the order of revocation.

2. Amendment to CGST Rule 88B:

No interest will be charged on the amount available in the electronic cash ledger on the due date of filing GSTR-3B, debited while filing the return in cases of delayed filing.

3. New Section 128A:

Waives interest and penalties for demand notices issued under Section 73 of CGST for fiscal years 2017-18, 2018-19, and 2019-20 in cases not involving fraud, suppression, and misstatement. This applies if the taxpayer pays the full amount in the notice by March 31, 2025.

4. Changes in Sections 73 and 74:

A common time limit will be set for issuing demand notices and orders. The time limit for taxpayers to claim the benefit of reduced penalty, by paying the tax demanded along with interest, is increased from 30 to 60 days.

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Monetary Limits and Appeals

1. Monetary Limits for GST Appeals:

Recommended monetary limits for filing appeals: ₹20 lakh for GST Appellate Tribunal, ₹1 crore for High Court, and ₹2 crore for Supreme Court.

2. Amending Sections 107 and 112:

The maximum amount for pre-deposit for filing an appeal before appellate authorities is reduced from ₹25 crore to ₹20 crore under both CGST and SGST. For appeals before the GST Appellate Tribunal, the pre-deposit is reduced from 20% with a maximum amount of ₹50 crores to 10% with a maximum of ₹20 crores under both CGST and SGST.

Additional Key Decisions

1. Sunset Clause for Anti-Profiteering Cases:

A sunset clause will be added for pending anti-profiteering cases. The hearing panel will shift from CCI to the principal bench of GSTAT. The sunset date for receiving new applications regarding anti-profiteering is set for April 1, 2025.

2. Time Limit for GSTAT Appeals:

Modifying Section 112 to provide a 3-month time frame for filing appeals before the GST Appellate Tribunal. The timeline will commence from a date yet to be notified, likely by August 5, 2024.

3. New Section 11A:

Allows regularization of non-levy or short levy of GST due to common trade practices.

4. IGST Refunds and Adjustments:

Mechanism introduced for claiming refunds of additional IGST paid due to upward price revisions after exports. No IGST refund will be allowed where export duty is payable.

5. Biometric-based Aadhaar Authentication:

Implementation of biometric-based Aadhaar authentication for GST registration will be rolled out nationwide in a phased manner.

6. DRC-03 Circular:

A circular will prescribe a mechanism for adjusting any demand amount paid through DRC-03 against the amount payable as a pre-deposit for filing a GST appeal.

7. Amendment to Section 122(1B):

Clarification that the penal provision is applicable only for those e-commerce operators required to collect TCS under Section 52 and not for other e-commerce operators.

The 53rd GST Council meeting has brought significant changes aimed at simplifying compliance, reducing the tax burden, and enhancing the efficiency of the GST system. These updates reflect the government’s ongoing efforts to create a more robust and taxpayer-friendly GST framework. Keep an eye on official announcements for further details and implementation guidelines.

Stay tuned for the latest updates and insights on GST and other financial regulations.

[ambitiousbaba]

All about 54th GST Council Meeting

54th GST Council Meeting The 54th GST Council meeting took place on September 6, 2024. It was chaired by Finance Minister Nirmala Sitharaman. The meeting focused on reviewing GST rates. Key discussions also addressed policy concerns. Efforts to improve compliance were part of the agenda. Changes in GST Rates The council discussed and implemented changes to several GST rates to streamline…

[rightnewshindi]

निर्मला सीतारमण की अध्यक्षता में 9 सितंबर को होगी जीएसटी काउंसिल की बैठक, दरों को तर्कसंगत बनाने पर होगी चर्चा

GST Council Meeting: केंद्रीय वित्त मंत्री निर्मला सीतारमण (Nirmala Sitharaman) की अध्यक्षता में जीएसटी परिषद (GST Council) की 54वीं बैठक 9 सितंबर 2024 को नई दिल्ली में आयोजित की जाएगी। यह जानकारी परिषद के आधिकारिक सोशल मीडिया अकाउंट ‘एक्स’ पर दी गई। जीएसटी परिषद, जिसमें केंद्र और राज्यों के वित्त मंत्री शामिल होते हैं, वस्तु एवं सेवा कर (जीएसटी) से जुड़े निर्णय लेने वाली सर्वोच्च संस्था है। इस…

[babatax]

18% GST Rates For Popcorn, Sparking Online Debate

GST rates for Popcorn under the direction of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman, the 55th GST Council took place at Jaisalmer, Rajasthan, on December 21st 2024. In addition to senior officials from the Ministry of Finance & States/UTs, the meeting was attended by the chief ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha; the deputy chief…

[nwnews24]

GST Council Meet 2024: शुरू हो गई बैठक, इंश्योरेंस पॉलिसी समेत कई चीजों के कम हो सकते हैं टैक्स

[internationalnewz]

Union Budget 2024: Clarity on ITC Eligibility for Sales Promotion Expenses Pivotal

Karan Kakkar, Partner at Grant Thornton Bharat, and Pragya Sharma, Associate Director at Grant Thornton Bharat, emphasize the critical need for reforms to streamline Input Tax Credit (ITC) claims in India’s GST regime. While GST was introduced to simplify India’s tax system and ensure a seamless flow of ITC, businesses have encountered numerous challenges and inconsistencies, particularly regarding ITC eligibility on sales promotion expenses.

The Need for Clarity and Consistency

In the recent GST Council meeting, Finance Minister Nirmala Sitharaman presented substantial proposals. However, industry stakeholders are still looking for additional measures to address their concerns. With the Union Budget on the horizon, businesses are hopeful for clarity on ITC uncertainties, comprehensive reforms to simplify ITC claims, reduced compliance burdens, and improved transparency within the GST framework. These reforms are essential for fostering a conducive business environment and boosting economic growth.

The Role of Sales Promotion in Business

Sales promotion activities, including discounts, gifts, free samples, loyalty programs, and promotional merchandise, are crucial for businesses aiming to attract customers, boost sales, and enhance brand visibility. However, GST provisions impose specific restrictions on the eligibility of ITC for goods given as gifts or free samples for promotional purposes.

The ambiguity surrounding the definition of ‘gift’ has led to the consistent denial of ITC. According to a CBIC press release dated July 10, 2017, ‘gift’ has not been defined in the GST law but generally refers to something given without consideration, voluntarily, and occasionally. Circular №92/11/2019-GST dated March 7, 2019, clarified that ITC is not available for goods and services used as gifts or free samples without consideration. If the distribution qualifies as a “supply” under Schedule I of the Act, the supplier can avail ITC.

Conflicting Rulings and Interpretations

The GST implications of promotional schemes have been a long-standing source of debate and confusion, with various conflicting rulings and interpretations. For example, the Tamil Nadu Appellate Authority for Advance Ruling (AAAR) ruled in the case of GRB Dairy Foods Pvt Ltd. that goods distributed as part of a promotional scheme do not qualify as a supply, and therefore, ITC is not eligible. This view was also upheld by the Karnataka AAAR in the case of Page Industries.

Understanding the Rationale for ITC Eligibility

The argument that companies distribute goods to dealers and customers purely on a voluntary basis, without any business objective, is unreasonable. These promotions are embedded within the overall supply value and serve strategic business purposes. While they may appear as ‘gifts’ from a marketing perspective, they are far from gratuitous in a commercial sense. Sales targets and promotional offers are incorporated into the value of supply, on which taxes are paid, aligning with the principle that ‘nothing is free.’

Addressing Industry Concerns

Addressing the concerns of Indian businesses regarding ITC eligibility on sales promotion expenses is crucial for fostering a business-friendly environment under the GST regime. Clarity and consistency in GST provisions related to ITC on promotional expenses are pivotal. As businesses await the upcoming Union Budget, their hopes are pinned on comprehensive reforms that streamline ITC claims, reduce compliance burdens, and enhance transparency.

By addressing these issues, the government can ensure a more straightforward, efficient, and business-conducive tax environment, promoting economic growth and stability.