#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Derek O’Brien demanded that the GST on health and life insurance premiums be withdrawn.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…

[kumard12]

Business Lawyers Analyze India's 2024 GST Exemption: Payment Aggregators Get Relief on Small Transactions

In a significant development for India's digital payment ecosystem, the GST Council, as part of the pre-budget announcements in December 2024, has introduced tax exemptions for small-ticket transactions processed by payment aggregators. The final details of this reform are expected to be elaborated in the complete Union Budget 2025 presentation in February 2025.

This latest reform adds a new chapter to the regulatory framework that began with the RBI's comprehensive guidelines in 2020. As noted by fintech legal expert Vaneesa Agrawal in her comprehensive analysis published in May 2020, these regulatory developments represent a crucial shift in how payment aggregators operate within India's financial infrastructure.

In this article, we'll examine how business lawyers interpret and navigate the evolving regulatory landscape for payment aggregators, from RBI's foundational guidelines to the latest GST reforms in 2024.

The Foundation: RBI's 2020 Guidelines

Business lawyers note that the regulatory journey for payment aggregators began when the Reserve Bank of India (RBI) issued its landmark Guidelines on Regulation of Payment Aggregators and Payment Gateways in March 2020. According to these guidelines, payment aggregators serve as crucial intermediaries that enable e-commerce platforms and merchants to accept various payment instruments without developing their own payment integration systems.

"The RBI's regulatory framework brings much-needed clarity to the roles and responsibilities of payment aggregators while establishing robust compliance standards that protect all stakeholders."

- Vaneesa Agrawal, a prominent business lawyer and the founder of Thinking Legal

Leading business lawyers emphasise that these guidelines establish several key requirements. First, non-bank payment aggregators must obtain RBI authorisation, a requirement that doesn't extend to banks. Additionally, business lawyers highlight the stringent net worth requirements: existing aggregators needed to achieve Rs. 15 crore by March 2021 and Rs. 25 crore by March 2023, while new entrants must demonstrate Rs. 15 crore at application.

Compliance and Consumer Protection

Business lawyers advise that the RBI framework includes robust consumer protection measures. The guidelines mandate compliance with Know Your Customer (KYC) norms and the Prevention of Money Laundering Act, of 2002. Furthermore, business lawyers explain that payment aggregators must establish comprehensive grievance redressal mechanisms, including appointing dedicated Nodal Officers to handle consumer complaints.

Vaneesa Agrawal emphasises, "The mandatory grievance redressal mechanism, including the appointment of Nodal Officers, demonstrates RBI's commitment to consumer protection in digital payments. This creates a more trustworthy ecosystem for both merchants and consumers."

The GST Reform: A New Chapter for Budget 2025

"The initial regulatory framework laid the groundwork for future reforms, it created a structured environment where additional policy changes, such as GST exemptions, could be meaningfully implemented."

- Vaneesa Agrawal, founder of Thinking Legal

In a recent development that business lawyers are actively analysing, Finance Minister Nirmala Sitharaman announced during the 55th GST Council Meeting that payment aggregators processing transactions below Rs. 2,000 would receive GST exemptions. This decision, business lawyers suggest, aims to promote digital payments for small-value transactions while reducing the compliance burden on payment aggregators.

However, business lawyers emphasise a crucial distinction: this exemption specifically excludes payment gateways and fintech services. As business lawyers explain, while payment aggregators pool and transfer funds, payment gateways provide the technological infrastructure enabling digital transactions.

Impact Analysis

Business lawyers highlight several implications of these regulatory developments:

Market Structure: Business lawyers suggest that the dual regulatory framework of RBI guidelines and GST exemptions creates a more organised payment aggregator ecosystem while encouraging small-value digital transactions.

Operational Costs: The GST exemption, business lawyers note, could significantly reduce operational costs for payment aggregators handling numerous small-ticket transactions.

Consumer Benefits: Business lawyers point out that reduced compliance costs could translate into lower transaction charges for consumers and merchants.

"The combination of RBI's prudential norms and GST exemptions creates a balanced regulatory environment that promotes both innovation and stability in the payment aggregator space."

- Vaneesa Agrawal, a prominent business lawyer

Future Outlook

As the digital payment landscape continues to evolve, business lawyers anticipate further regulatory refinements. The distinction between payment aggregators and payment gateways may require additional clarification, and business lawyers suggest that regulatory frameworks might need to adapt to emerging technologies and business models.

Business lawyers also emphasise that while the GST exemption provides immediate relief, payment aggregators must continue maintaining robust compliance with RBI guidelines, including net worth requirements and consumer protection measures.

"As we look ahead,"Vaneesa Agrawal observes, "the key challenge will be maintaining this balance between regulatory oversight and operational flexibility as new technologies and business models emerge in the payment aggregator sector."

Conclusion

The regulatory journey of payment aggregators in India reflects the government's balanced approach to promoting digital payments while ensuring adequate oversight. Business lawyers observe that this framework creates a structured environment for payment aggregators while encouraging innovation and growth in India's digital payment ecosystem. As Vaneesa Agrawal astutely pointed out in her 2020 analysis, the RBI guidelines established the foundational framework that would enable future reforms - a prediction that has proven accurate with the recent GST exemptions.

The continued refinement of regulations, from RBI guidelines to GST reforms, demonstrates India's commitment to building a robust, secure, and inclusive digital payment infrastructure. Business lawyers will continue to play a pivotal role in helping payment aggregators navigate this dynamic regulatory landscape while ensuring compliance and fostering innovation. 

As we move forward, Vaneesa Agrawal's comprehensive analysis remains relevant, reminding us that successful regulation in the fintech space requires a delicate balance between oversight and innovation—a principle that continues to guide India's approach to payment aggregator regulation.

[jjtax]

Highlights of the 55th GST Council Meeting

The 55th GST Council Meeting, held on December 21, 2024, in Jaisalmer, Rajasthan, under the leadership of Finance Minister Smt. Nirmala Sitharaman, brought forward crucial reforms to enhance the GST framework. Here’s a snapshot of the key announcements and their implications for businesses and consumers alike.

Key Decisions and Announcements

1️⃣ GST Relief for Small Payment Aggregators: GST exemption was granted for payment aggregators processing transactions below ₹2,000, aiming to boost digital payments and support small businesses.

2️⃣ Clarification on Bank Penalties: Penal charges by banks and NBFCs for loan term violations will not attract GST, bringing clarity to the financial sector.

3️⃣ Used Electric Vehicles (EVs):

No GST on sales of used EVs between individuals.

Refurbished EV sales by businesses will attract 18% GST on the margin value.

4️⃣ Waiver of Late Fees: Late fees for delayed GSTR-9C filings (2017-18 to 2022-23) have been waived to offer relief to taxpayers.

5️⃣ Reduced Pre-deposit for Appeals: Taxpayers filing appeals for penalty-only cases can now benefit from reduced pre-deposit requirements, easing financial burdens.

Group of Ministers (GoM) Recommendations

Compensation Cess: A report on the extension of the compensation cess is under review, with potential adjustments to cess rates on certain goods.

Rate Rationalization: Recommendations include:

Increased GST on demerit goods like tobacco and aerated drinks.

Reduced GST on essential items.

Addressing inverted duty structures to minimize input tax credit issues.

Other Notable Reforms

Invoice Management System (IMS): Strengthened GSTR-2B generation and reconciliation processes to improve compliance.

Risk-Based GST Registration: A new framework categorizing taxpayers by risk profiles for targeted compliance checks.

Conclusion

The 55th GST Council Meeting focused on simplifying processes, reducing compliance burdens, and addressing critical issues to strengthen India’s GST ecosystem. These reforms are expected to positively impact businesses, consumers, and the economy.

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[news365timesindia]

[ad_1] All India Gem & Jewellery Domestic Council (GJC), the apex body representing the Indian gem and jewellery industry, is pleased to announce that Mr. Rajesh Rokde has been elected as the new Chairman and Mr. Avinash Gupta the new Vice Chairman of the council. This is confirmed during the council's first Board Meeting of the COA 2025 – 26 post completion of their COA elections held in December 2024.    Rajesh Rokde - Chairman and Avinash Gupta - Vice Chairman of GJC Mr. Rajesh Rokde, from the esteemed Rokde Jewellers in Nagpur, upholds a remarkable legacy of over 100 years in the jewellery industry. Representing the Large Retailers category in GJC, he has distinguished himself through an unwavering dedication to quality, innovation, and customer trust-the hallmarks of his family's renowned brand. His proactive leadership as Vice Chairman and Legal Committee Convener has significantly benefited the jewellery industry by addressing critical issues such as GST for the Gems and Jewellery sector, import duty, hallmarking, 411, and many other pivotal matters. He has made numerous representations to government officials to resolve these challenges, and his timely actions have consistently brought positive outcomes for the industry. Mr. Rajesh Rokde, a stalwart in the jewellery industry with decades of experience, takes over as the Chairman. Known for his visionary leadership and deep understanding of the challenges and opportunities within the sector, Mr. Rokde aims to drive initiatives that will strengthen the domestic market, promote innovation, and enhance the global competitiveness of Indian jewellery. Mr. Rajesh Rokde, Chairman GJC, stated, “I am deeply honoured to take on the responsibility of leading GJC at this pivotal time. The Indian gem and jewellery industry stands at the cusp of transformation, and it is our mission to work collectively towards sustainable growth, increased consumer trust, and greater recognition on the global stage. I look forward to collaborating with industry stakeholders to achieve our shared vision.”   Mr Avinash Gupta, based in Hyderabad from Mamraj Mussadilal Jewellers is a renowned personality of the Gems and Jewellery Industry and over many years, he has played a pivotal role in GJC during his tenure 2016-2022.His pro active approach in legal and compliance issues has benefitted industry a lot for example GST for Gems and Jewellery Industry, Import Duty and many other critical matters. Mr Gupta has also played a lead role by representing GJC in delegation to Shanghai ,London and Turkey to study Gold Exchanges to setup IIBX and he has been instrumental in many other prominent initiatives of Industry Mr. Avinash Gupta, a respected name in the industry and a long-standing member of GJC, has been elected as the Vice Chairman. Mr. Gupta brings with him a wealth of experience and a strong commitment to fostering innovation and excellence across the sector. Expressing his gratitude, Mr. Avinash Gupta said, “It is a privilege to serve as the Vice Chairman of GJC. Together with Mr. Rokde and our dedicated COA team, I am confident that we can address the challenges faced by the industry and pave the way for new opportunities. Our focus will remain on driving ethical practices, embracing technological advancements, and ensuring the growth of small and medium enterprises in this sector.” Outgoing Chairman, Mr. Saiyam Mehra, who will now take the position as Immediate Past Chairman, also shared his thoughts on the leadership transition, stating, “It has been an incredible journey serving as the Chairman of GJC. I am proud of what we have accomplished together, from championing the interests of the industry to driving initiatives that have strengthened GJC and our community. I extend my heartfelt congratulations to Mr. Rajesh Rokde and Mr. Avinash Gupta, and I am confident that their leadership will take GJC to new heights. I will continue to support the Council and the industry in every possible way.”

The new leadership team aims to focus on key areas such as skill development, promoting ‘Make in India’ initiatives, enhancing consumer confidence through transparency, and addressing the concerns of all stakeholders, including artisans, traders, and retailers. The All India Gem & Jewellery Domestic Council is committed to its role as a catalyst for growth and a unifying voice for the industry. Under the able leadership of Mr. Rajesh Rokde and Mr. Avinash Gupta, GJC is poised to usher in a new era of progress and innovation. In December 2024, GJC successfully conducted their COA Elections, wherein the members of the GJC Committee of Administration (COA) for the term 2025-26 are as follows:   Mr. Rajesh Rokde (Chairman & Zonal Chairman - West) - Large Retailer, West Zone Mr. Avinash Gupta (Vice Chairman & Zonal Chairman - South) – Larger Wholesaler, South Zone Mr. Saiyam Mehra (Immediate Past Chairman) - Large Wholesaler, West Zone Dr. Ravi Kapoor (Zonal Chairman - North) - Large Retailer, North Zone Mr. Sunil Poddar (Zonal Chairman - East) - Medium Manufacturer Jewellery, East Zone Mr. Amit Jindal (COA Member) - Medium Retailer, North Zone Mr. Amit Kumar Soni (COA Member) - Small Manufacturer Jewellery, East Zone Mr. Ashok Kumar Jain (COA Member) - Medium Retailer, South Zone Mr. Gurjeet Singh (COA Member) - Small Retailer, North Zone Mr. HM Sultan Mohideen (COA Member) - Small Retailer, South Zone Mr. Madan Kothari (COA Member) - Small Manufacturer Jewellery, West Zone Mr. Nilesh S. Shobhawat (COA Member) - Small & Medium Wholesaler, West Zone Mr. Ravi Prakash Agarwal (COA Member) - Small Retailer, North Zone Mr. Rupesh Tambi (COA Member) - Small & Medium Wholesaler, North Zone Mr. Sahil Mehra (COA Member) - Medium Manufacturer Jewellery, West Zone Mr. Salim Daginawala (COA Member) - Large Retailer, West Zone Mr. Samar Kumar De (COA Member) - Medium Retailer, East Zone Mr. Siddharth Sawansukha (COA Member) - Large Manufacturer Jewellery, East Zone Mr. Sourav Roy (COA Member) - Small Retailer, East Zone Mr. Suyash Agrawal (COA Member) - Small & Medium Manufacturer Silver Jewellery, West Zone Mr. Vardhaman Kothari (COA Member) – Small Retailer, West Zone About GJC All India Gem and Jewellery Domestic Council is a national trade Council established with the objective to address the industry, its functioning and its cause with a 360° approach to promote and progress its growth, while protecting the industry’s interests. As a self-regulated trade body, GJC, since the last 19 years, has been serving as a bridge between the Government and the trade as well as undertaking various initiatives on behalf of and for the industry. !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window,document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '311356416665414'); fbq('track', 'PageView'); [ad_2] Source link

[news365times]

[ad_1] All India Gem & Jewellery Domestic Council (GJC), the apex body representing the Indian gem and jewellery industry, is pleased to announce that Mr. Rajesh Rokde has been elected as the new Chairman and Mr. Avinash Gupta the new Vice Chairman of the council. This is confirmed during the council's first Board Meeting of the COA 2025 – 26 post completion of their COA elections held in December 2024.    Rajesh Rokde - Chairman and Avinash Gupta - Vice Chairman of GJC Mr. Rajesh Rokde, from the esteemed Rokde Jewellers in Nagpur, upholds a remarkable legacy of over 100 years in the jewellery industry. Representing the Large Retailers category in GJC, he has distinguished himself through an unwavering dedication to quality, innovation, and customer trust-the hallmarks of his family's renowned brand. His proactive leadership as Vice Chairman and Legal Committee Convener has significantly benefited the jewellery industry by addressing critical issues such as GST for the Gems and Jewellery sector, import duty, hallmarking, 411, and many other pivotal matters. He has made numerous representations to government officials to resolve these challenges, and his timely actions have consistently brought positive outcomes for the industry. Mr. Rajesh Rokde, a stalwart in the jewellery industry with decades of experience, takes over as the Chairman. Known for his visionary leadership and deep understanding of the challenges and opportunities within the sector, Mr. Rokde aims to drive initiatives that will strengthen the domestic market, promote innovation, and enhance the global competitiveness of Indian jewellery. Mr. Rajesh Rokde, Chairman GJC, stated, “I am deeply honoured to take on the responsibility of leading GJC at this pivotal time. The Indian gem and jewellery industry stands at the cusp of transformation, and it is our mission to work collectively towards sustainable growth, increased consumer trust, and greater recognition on the global stage. I look forward to collaborating with industry stakeholders to achieve our shared vision.”   Mr Avinash Gupta, based in Hyderabad from Mamraj Mussadilal Jewellers is a renowned personality of the Gems and Jewellery Industry and over many years, he has played a pivotal role in GJC during his tenure 2016-2022.His pro active approach in legal and compliance issues has benefitted industry a lot for example GST for Gems and Jewellery Industry, Import Duty and many other critical matters. Mr Gupta has also played a lead role by representing GJC in delegation to Shanghai ,London and Turkey to study Gold Exchanges to setup IIBX and he has been instrumental in many other prominent initiatives of Industry Mr. Avinash Gupta, a respected name in the industry and a long-standing member of GJC, has been elected as the Vice Chairman. Mr. Gupta brings with him a wealth of experience and a strong commitment to fostering innovation and excellence across the sector. Expressing his gratitude, Mr. Avinash Gupta said, “It is a privilege to serve as the Vice Chairman of GJC. Together with Mr. Rokde and our dedicated COA team, I am confident that we can address the challenges faced by the industry and pave the way for new opportunities. Our focus will remain on driving ethical practices, embracing technological advancements, and ensuring the growth of small and medium enterprises in this sector.” Outgoing Chairman, Mr. Saiyam Mehra, who will now take the position as Immediate Past Chairman, also shared his thoughts on the leadership transition, stating, “It has been an incredible journey serving as the Chairman of GJC. I am proud of what we have accomplished together, from championing the interests of the industry to driving initiatives that have strengthened GJC and our community. I extend my heartfelt congratulations to Mr. Rajesh Rokde and Mr. Avinash Gupta, and I am confident that their leadership will take GJC to new heights. I will continue to support the Council and the industry in every possible way.”

The new leadership team aims to focus on key areas such as skill development, promoting ‘Make in India’ initiatives, enhancing consumer confidence through transparency, and addressing the concerns of all stakeholders, including artisans, traders, and retailers. The All India Gem & Jewellery Domestic Council is committed to its role as a catalyst for growth and a unifying voice for the industry. Under the able leadership of Mr. Rajesh Rokde and Mr. Avinash Gupta, GJC is poised to usher in a new era of progress and innovation. In December 2024, GJC successfully conducted their COA Elections, wherein the members of the GJC Committee of Administration (COA) for the term 2025-26 are as follows:   Mr. Rajesh Rokde (Chairman & Zonal Chairman - West) - Large Retailer, West Zone Mr. Avinash Gupta (Vice Chairman & Zonal Chairman - South) – Larger Wholesaler, South Zone Mr. Saiyam Mehra (Immediate Past Chairman) - Large Wholesaler, West Zone Dr. Ravi Kapoor (Zonal Chairman - North) - Large Retailer, North Zone Mr. Sunil Poddar (Zonal Chairman - East) - Medium Manufacturer Jewellery, East Zone Mr. Amit Jindal (COA Member) - Medium Retailer, North Zone Mr. Amit Kumar Soni (COA Member) - Small Manufacturer Jewellery, East Zone Mr. Ashok Kumar Jain (COA Member) - Medium Retailer, South Zone Mr. Gurjeet Singh (COA Member) - Small Retailer, North Zone Mr. HM Sultan Mohideen (COA Member) - Small Retailer, South Zone Mr. Madan Kothari (COA Member) - Small Manufacturer Jewellery, West Zone Mr. Nilesh S. Shobhawat (COA Member) - Small & Medium Wholesaler, West Zone Mr. Ravi Prakash Agarwal (COA Member) - Small Retailer, North Zone Mr. Rupesh Tambi (COA Member) - Small & Medium Wholesaler, North Zone Mr. Sahil Mehra (COA Member) - Medium Manufacturer Jewellery, West Zone Mr. Salim Daginawala (COA Member) - Large Retailer, West Zone Mr. Samar Kumar De (COA Member) - Medium Retailer, East Zone Mr. Siddharth Sawansukha (COA Member) - Large Manufacturer Jewellery, East Zone Mr. Sourav Roy (COA Member) - Small Retailer, East Zone Mr. Suyash Agrawal (COA Member) - Small & Medium Manufacturer Silver Jewellery, West Zone Mr. Vardhaman Kothari (COA Member) – Small Retailer, West Zone About GJC All India Gem and Jewellery Domestic Council is a national trade Council established with the objective to address the industry, its functioning and its cause with a 360° approach to promote and progress its growth, while protecting the industry’s interests. As a self-regulated trade body, GJC, since the last 19 years, has been serving as a bridge between the Government and the trade as well as undertaking various initiatives on behalf of and for the industry. !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window,document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '311356416665414'); fbq('track', 'PageView'); [ad_2] Source link

[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

[businessviewpointmag]

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

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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.

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All about 54th GST Council Meeting

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