Indirect Tax Proposal along with 53rd GST Council recommendation.pdf

Dear Sir/ Madam,

We are pleased to share with you a presentation prepared by GSTIND on the Union Budget 2024. This presentation provides an in-depth analysis of significant changes proposed in the Union Finance 2024 related to Customs, GST, and Compensation Cess.

The presentation covers the following key points:

Significant changes proposed in the Union Finance 2024 related to Customs, GST, and Compensation Cess.
Various amendments in rules, clarifications, and notifications were issued based on recommendations from the 53rd GST Council meeting.
Key changes are discussed in detail within the presentation.
We believe this presentation will be highly informative and beneficial for understanding the latest updates and implications of the Union Budget 2024.

Please find the presentation attached for your reference.

If you have any questions or require further information, please do not hesitate to contact us.

Best regards,

1. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
INDIRECT TAX UPDATE
UNION- BUDGET PROPOSAL -2024
53
rd
GST Council Meeting Updates

2. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
BRIEF OVERVIEW OF THE COVERAGE
•The presentation covers significant changes proposed
in the Union Finance 2024 related to Customs, GST,
and Compensation Cess.

•It includes various amendments in rules, clarifications,
and notifications issued based on recommendations
from the 53rd GST Council meeting. Key changes are
discussed within the presentation.
PART-I – CUSTOMS

1)CUSTOMS – RATE CHANGE
2)CUSTOMS- RATE CHANGE – COMPENSATION CESS
3) CUSTOMS- OTHER PROCEDURAL CHANGES

3. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
BRIEF OVERVIEW OF THE COVERAGE
PART-II GST

1.AMENSTY SCHEME – NOTICES UNDER SECTION 73 OF THE
CGST ACT
2. COMMON TIME LIMIT –NOTICE -74A
3. TIME LIMIT TO AVAIL ITC UNDER SECTION 16(4) OF CGST ACT
4. TOS – RCM - TIME LIMIT TO AVAIL ITC 13(3)
5.TIME LIMIT FOR ISSUE OF INVOICE , CLARIFICATION SUPPLIER WHO IS NOT
REGISTERD 31(3)(F)
6.REGULARIZING PAST ISSUES- SEC. 11A
7.SEC. 9 - EXTRA NEUTRAL ALCOHOL (ENA)
8.APPORTIONMENT OF CO-INSURANCE PREMIUM & SERVICES BY THE INSURER TO
THE RE-INSURER
9.APPEARANCE OF AUTHORIZED REPRESENTATIVE IN COMPLIANCE OF SUMMONS
10.RESTRICTION ON REFUND –EXPORT

4. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
BRIEF OVERVIEW OF THE COVERAGE
PART-II GST

11.MONETARY LIMITS FOR FILING OF APPEAL BEFORE THE GSTAT, HC & SC
12.REDUCTION OF THE QUANTUM OF PRE - DEPOSIT FOR FILING OF APPEALS
13.TIME FOR FILING APPEALS IN GST APPELLATE TRIBUNAL
14.NO LEVY OF INT. U/S 50 OF CGST ACT WHERE CREDIT IS AVAILABLE IN (ECL)
15.CERTAIN EXEMPTIONS RELATED TO ACCOMMODATION SERVICES, PROVIDING
RELIEF TO STUDENTS & WORKING PROFESSIONALS
16.EXEMPTIONS SERVICES PROVIDED BY INDIAN RAILWAYS TO GENERAL PUBLIC.
17.STATUTORY COLLECTIONS MADE BY (RERA)
18.ROLLING-OUT THE BIOMETRIC-BASED AADHAAR AUTHENTICATION OF
REGISTRATION APPLICANTS ON PAN - INDIA BASIS
19.REDUCTION IN TCS RATE FOR SUPPLIES MADE THROUGH ECOs FROM 1% to
0.5%
20.CHANGE IN DUE DATE FOR FILING OF RETURN IN FORM GSTR -4

5. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
BRIEF OVERVIEW OF THE COVERAGE
PART-II GST
21.NEW OPTIONAL FACILITY IN FORM GSTR-1
22. POST SALES DISCOUNT - CIRCULAR NO. 212/06/2024
23. EXEMPTION FOR FILING ANNUAL RETURN IN FORM GSTR-9/9A
24.ADJUSTMENT OF PAYMENTS FOR DEMAND PRE-DEPOSIT MADE IN
FORM GST DRC-03
25. RCM ON IMPORT OF SERVICES FROM A RELATED PERSON OR
ESTABLISHMENTS OUTSIDE INDIA
26.WARRANTY & EXTENDED WARRANTY CIRCULAR NO. 212/06/2024
27.CLARFICATION ON VALUATION OF CORPORATE GUARANTEE

6. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
CUSTOMS – RATE CHANGES
IX.

Precious Metals
Existing
Rates
New
Rates
1.

7108

Gold bar
15% 6%
2.

7108

Gold dore
14.35% 5.35%
3.

7106

Silver bar
15% 6%
4.

7106

Silver dore
14.35% 5.35%
5.

7110

Platinum, Palladium, Osmium, Ruthenium, Iridium
15.4% 6.4%
6.

7118

Coins of precious metals
15% 6%
7.

7113

Gold/Silver findings
15% 6%
8.

71
Platinum and Palladium used in the manufacture of noble metal
solutions, noble metal compounds and catalytic convertors
7.5% 5%
9.
84
Bushings made of platinum and rhodium alloy when imported in
exchange of worn out or damaged bushings exported out of India
7.5% 5%

7. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
CUSTOMS – RATE CHANGES
XI. IT and Electronics Sector

Existing
Rates
New
Rates
1. 8517 1300,
8517 14 00
Cellular mobile phone 20% 15%
2. 8504 40 Charger/Adapter of cellular mobile phone 20% 15%
3. 8517 79 10 Printed Circuit Board Assembly (PCBA) of cellular mobile phone 20% 15%
4. 28, 29, 38 Specified parts for use in manufacture of connectors 5%/7.5% Nil
5. 74 Oxygen Free Copper for use in manufacture of Resistors 5% Nil
6. 40 Specified die-cut parts for use in manufacture of cellular mobile phones As
applicable
Nil
7. 40, 70, 76
Specified mechanics for use in manufacture of cellular mobile
Phones
As
applicable
Nil
8. 8517 79 10 Printed Circuit Board Assembly (PCBA) of specified telecom
equipment
10% 15%

8. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
CUSTOMS – RATE CHANGES
XII.

Renewable Energy Sector
Existing
Rates
New
Rates
1. 84, 85, or
any other
chapter
Specified capital goods for use in manufacture of solar
cells or solar modules, and parts for manufacture of such
capital goods
7.5% Nil
2. 7007 Solar glass for manufacture of solar cells or solar
modules
Nil 10%(w.e.f.
1.10.2024)
3. 74 Tinned copper interconnect for manufacture of solar
cells or solar modules
Nil 5%(w.e.f 1.10.20
24)
XIII.

Shipping

1. Any Chapter
Components and consumables for use in manufacture of
specified vessels
As
applicable
Nil
2. Any Chapter Technical documentation and spare parts for
construction ofwarships
As
applicable
Nil

9. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
CUSTOMS – RATE CHANGES
Based on the recommendation of the GST Council in
its 53rd meeting, GST Compensation Cess is being
exempted with effect from 1st July, 2017 on imports
in SEZ by SEZ units or developers for authorized
operations.

Notification number G.S.R. 394 (E), dated the 12th
July, 2024 shall be deemed to have, and always to
have, for all purposes, come into force on and from
the 1st day of July, 2017.

10. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
CUSTOMS – OTHER
IMPORTANT CHANGES
S.No.
Notification
No.
Subject
1. 38/2024-
Customs
dated
23.07.2024
Currently, articles of foreign origin can be imported into India for
repairs subject to their re-exportation within six months
extendable to 1 year. The duration for export in the case of
aircraft and vessels imported for maintenance, repair and
overhauling has been increased from 6 months to 1 year,
further extendable by 1 year.
2.

39/2024-
Customs
dated
23.07.2024
The time-period of duty-free re-import of goods (other than
those under export promotion schemes) exported out from India
under warranty has been increased from 3 years to 5 years,
further extendable by 2 years.

11. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
1. AMENSTY SCHEME – NOTICES
UNDER SECTION 73 OF THE CGST ACT
(Coverage) Demand notices issued under Section 73 of
the CGST Act (i.e. the cases not involving fraud,
suppression or willful misstatement, etc.) for the fiscal
years 2017-18, 2018-19 and 2019-20, if the full tax
demanded is paid up to 31.03.2025.

(Measures taken) Insertion of Section 128A in CGST
Act, to provide for conditional waiver of interest or
penalty or both, in cases where the taxpayer pays the
full amount of tax demanded in the notice up to
31.03.2025.

(Exclusion) The waiver does not cover demand of
erroneous refunds.

12. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
1. AMENSTY SCHEME – NOTICES UNDER
SECTION 73 OF THE CGST ACT
 What if the interest and penalty already paid ?

Where such interest and penalty has already been paid, no
refund of the same shall be available.

 Matters which are pending before appeal or writ -73?

Where an appeal or writ petition filed by the said person
is pending before Appellate Authority or Appellate
Tribunal or a court, as the case may be, has to be
withdrawn by the said person on or before the date
notified under sub-section (1).

13. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
1. AMENSTY SCHEME – NOTICES UNDER
SECTION 73 OF THE CGST ACT
 What if the notice under section 74 is held to be invalid as
per subsection 2 of section 75

Notice or order shall be considered to be a notice or order, as the
case may be, referred to in clause(a) or clause (b) of this sub-
section i.e. considered to be under section -73

 What if appeal is filed by the applicant or by department

The said person pays the additional amount of tax payable, if any,
in accordance with the order of the Appellate Authority or the
Appellate Tribunal or the court or the Revisional Authority, as the
case may be, within three months from the date of the said
order

14. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
1. AMENSTY SCHEME – NOTICES UNDER
SECTION 73 OF THE CGST ACT
 Can a Appeal be filed against the matter concluded
under 128A(1)

Notwithstanding anything contained in this Act, where any
amount specified under sub-section (1) has been paid and
the proceedings are deemed to be concluded under the
said sub-section, no appeal under sub-section (1) of
section 107 or sub-section (1) of section 112 shall lie
against an order referred to in clause (b) or clause (c)
of sub-section (1), as the case may be

15. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
2. Common Time Limit –Notice -74A

Basis

Proposed Provision u/s 74A
Applicability for
determination of tax
pertaining to the
period
Financial Year 2024-25 onwards
Discontinuance of section 73 and 74 from Financial year 2023-24
Reason

Both for cases of demand for reasons other than fraud, willful
misstatement or suppression to evade tax as well as reasons
of fraud, willful misstatement or suppression to evade tax
Time Limit to Issue
DCN
For Tax short paid, not paid, short levied, ITC Wrongly claimed
or utilized:
42 months within due to filling of Annual Return or

For erroneous refund:
42 months from date of erroneous refund

16. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
2. Common Time Limit –Notice -74A

Time Limit for
passing Order

Within 12 months from date of issuance of notice
Extension in Time
Limit of
Passing Order
6 months by officer authorized by Commissioner not below rank of
Joint Commissioner with reason to be recorded in Writing
Minimum Limit of
Tax Demand
No notice to be issued if amount involved is less than 1000.

Reduced Penalty
before issuance of
Notice
Non-fraud etc. cases: No penalty if tax and interest is paid

Fraud etc. cases: 15% penalty if tax and interest is paid
Reduced
Penalty after
issuance of
SCN
Non-fraud etc. cases: No penalty if tax and interest is paid within 60
days.

Fraud etc. cases: 25% penalty if tax and interest is paid within
60 days

17. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
2. Common Time Limit –Notice -74A

Reduced Penalty
after passing of
Order

Non-fraud etc. cases: No reduction in penalty

Fraud etc. cases: 50% penalty if tax and interest is paid within 60
days.

Maximum Penalty Non-fraud etc. cases: 10% of tax or Rs. 10,000, whichever is
higher

Fraud etc. cases: 100% of tax specified in the notice

Blocking of ITC u/s
17(5)
No blocking of ITC

18. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
3. TIME LIMIT TO AVAIL ITC UNDER
SECTION 16(4) OF CGST ACT
Proposed amendment- sub-section (5) is being inserted in
section 16 of the CGST Act, 2017, overriding clause 16(4)

In respect of initial years of implementation of GST, i.e.,
financial years 2017-18, 2018-19, 2019-20 and 2020-21: The
time limit to avail ITC in respect of any invoice or debit note
under Section 16(4) of CGST Act, through any return in the
FORM GSTR-3B filed up to 30.11.2021 for the financial years
2017-18, 2018-19, 2019-20 & 2020-21, may be deemed to be
30.11.2021.

19. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
ii.With respect to cases where returns have
been filed after revocation: sub-section (6) is being
inserted in the said section to provide which provide
ITC relaxation in cases of Revoked Registrations. To
conditionally relax the provisions of Section 16(4) in
such a way that, in cases where an order of
revocation is been received, then the returns been
pending from the day of cancellation of regst./effective
date of cancellation of regst. should be filed within
30 days of the receipt of the order of revocation.

3. TIME LIMIT TO AVAIL ITC UNDER
SECTION 16(4) OF CGST ACT

20. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
The above amendment distinguishes the Time of Supply (TOS) for registered and unregistered
suppliers. For unregistered suppliers, the TOS and the time limit for availing of input tax credit as
per section 16(4) will be counted from the date of issue of the invoice by the recipient.
4. TOS – RCM - TIME LIMIT TO AVAIL ITC
(a) the date of payment as entered in the books of account of the
recipient or the date on which the payment is debited in his bank
account, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of
invoice or any other document, by whatever name called, in lieu
thereof by the supplier, in cases where invoice is required to be
issued by the supplier:
(c) in case of services received from Unregistered Supplier on which
tax is payable on RCM and time of supply shall be the date of
issue of invoice by the recipient, in cases where invoice is to be
issued by the recipient
Section 13(3) - the time of supply shall be the earlier of the following
dates

21. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
5. TIME LIMIT FOR ISSUE OF INVOICE &
CLARIFICATION SUPPLIER WHO IS NOT REGISTERD
Section 31(3)(f) is being amended, so as to
incorporate an enabling provision for prescribing the
time period for issuance of invoice by the recipient
in case of reverse charge mechanism supplies.

Further, an explanation has also been inserted and
clarified that for the purpose of this section ―supplier
who is not registered‖ shall also include the supplier
who is registered solely for the purpose of
deduction of tax under section 51.

22. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
6. REGULARIZING PAST ISSUES - SEC. 11A
(Main Agenda) A strategic measure to address non-levy or
short-levy of GST due to common trade practices, with an
aim to provide a fair and efficient mechanism for regularizing
past issues, reducing litigation, and promoting a more
cooperative compliance environment.

(Measures Taken)
An amendment to the CGST Act, 2017 will introduce
Section 11A to address cases of non-levy or short-levy
based on GST Council recommendations, once passed
by Parliament.

Further guidelines and notifications instructing upon the
same will be issued for its implementation.

23. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
6. REGULARIZING PAST ISSUES - SEC. 11A
11A. Notwithstanding anything contained in this Act, if the
Government is satisfied that —

a)a practice was, or is, generally prevalent regarding levy
of central tax (including non-levy thereof) on any supply
of goods or services or both; and

b)such supplies were, or are, liable to, —

i.central tax, in cases where according to the said
practice, central tax was not, or is not being,
levied, or

ii.a higher amount of central tax than what was, or is
being, levied, in accordance with the said practice.

24. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
7. SEC. 9 - Extra Neutral Alcohol (ENA)
It is proposed that along with supply of alcoholic
liquor for human consumption, Extra Neutral
Alcohol (ENA) used in manufacture of alcoholic
liquor for human consumption out of purview of
levy of tax under GST Act, 2017.

States will have authority to levy tax on ENA
and will reduce the cascading effect of tax.

There are litigations pending on this issue in
various courts and forums, where in some cases,
the GST authorities have demanded tax on
ENA, and in other cases, state authorities
have done so.
The amendment is proposed to be made applicable from the prospective date.

25. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
8. APPORTIONMENT OF CO -INSURANCE
PREMIUM & SERVICES BY THE INSURER TO THE RE -INSURER
Schedule III of the CGST Act, 2017 specifies Activities or transactions which shall be treated neither
as a supply of goods nor a supply of services. following services have also been inserted in this list
Activity of apportionment of co-insurance
premium by the lead insurer to the co-
insurer for the insurance services jointly
supplied by the lead insurer and the co-
insurer to the insured in coinsurance
agreements, subject to the condition that
the lead insurer pays the applicable
taxes on the entire amount of premium
paid by the insured.
Recipient
lead insurer
co-insurer co-insurer

26. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
8. APPORTIONMENT OF CO -INSURANCE
PREMIUM & SERVICES BY THE INSURER TO THE RE -INSURER
Schedule III of the CGST Act, 2017 specifies Activities or transactions which shall be treated neither
as a supply of goods nor a supply of services. following services have also been inserted in this list
Services by the insurer to the re-
insurer, for which the ceding
commission or the reinsurance
commission is deducted from
reinsurance premium paid by the
insurer to the reinsurer, shall be
treated as neither supply of goods
nor supply of services, provided
that tax liability on the gross
reinsurance premium inclusive of
reinsurance commission or the
ceding commission is paid by the
reinsurer
Insurer
Re-insurer
Reinsurance
premium
Reinsurance
commission or
the ceding
commission

27. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
9. APPEARANCE OF AUTHORIZED
REPRESENTATIVE IN COMPLIANCE OF SUMMONS
Section 70 ―(1A) All persons summoned under sub-
section (1) shall be bound to attend, either in person
or by an authorised representative, as such officer
may direct, and the person so appearing shall state the
truth during examination or make statements or
produce such documents and other things as may be
required.‖.
The summoned persons were mandated to appear in person before the tax
authorities in compliance of summons. The proposed amendment shall enable
authorised representatives to appear on behalf of the summoned person before the
proper officer in compliance of summons issued by the said officer.

28. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
10. RESTRICTION ON REFUND –EXPORT
Existing Provision:

As per Second proviso to section 54(3) of the CGST
Act, no refund of unutilized input tax credit shall be
allowed in cases where the goods exported out of India
are subjected to export duty.
Earlier the restriction is for unutilized input tax credit but now it has been proposed to
also restrict refund of IGST paid on supplies of such goods.
―(15) Notwithstanding anything contained in this
section, no refund of unutilized input tax credit on
account of zero rated supply of goods or of integrated
tax paid on account of zero rated supply of goods shall
be allowed where such zero rated supply of goods is
subjected to export duty.”.

29. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
11. MONETARY LIMITS FOR FILING OF
APPEAL BEFORE THE GSTAT, HC & SC
To be appealed before Up to (Monetary Limit)
GSTAT Rs. 20 Lakhs
HIGH COURT Rs. 1 Crore (> 20 Lakhs)
SUPREME COURT Rs. 2 Crore (> 1 Crore)
Circular No. 207/1/2024-GST

(Main Agenda) Reduction of Government Litigation by
Fixing monetary limits for filing appeals under GST -
Section 120 CGST ACT.

(Measures recommended) To prescribe monetary limits,
subject to certain exclusions, for appealing in GST by
the department before GST appellate Tribunal, High
Court & Supreme Court as tabulated below:

30. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
11. MONETARY LIMITS FOR FILING OF
APPEAL BEFORE THE GSTAT, HC & SC
Circular No. 207/1/2024-GST – Important Principal


The aggregate of the amount of tax in dispute (including
CGST, SGST/UTGST, IGST and Compensation Cess)
only shall be considered while applying the monetary
limit for filing appeal.


In a composite order which disposes more than one
appeal/demand notice, the monetary limits shall be
applicable on the total amount of tax/interest/penalty/
late fee, as the case may be, and not on the amount
involved in individual appeal or demand notice.

31. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
12. REDUCTION OF THE QUANTUM OF
PRE- DEPOSIT FOR FILING OF APPEALS UNDER GST
(Main Agenda) To ease cash flow and working capital
blockage for the taxpayers.

(Measures taken) By amending Sections 107 and
112 of CGST Act for reducing the amount of pre-
deposit required to be paid for filing of appeals under
GST:


(a) The maximum amount for filing appeal
with the Appellate Authority has been
reduced from Rs. 25 crore CGST and Rs. 25
crore SGST to Rs. 20 crore CGST and Rs.
20 crore SGST.

32. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
12. REDUCTION OF THE QUANTUM OF
PRE- DEPOSIT FOR FILING OF APPEALS UNDER GST
(b) The amount of pre-deposit for filing appeal
with the Appellate Tribunal has been reduced
from 20% with a maximum amount of Rs. 50
crore CGST and Rs. 50 crore SGST to 10
% with a maximum of Rs. 20 crore CGST
and Rs. 20 crore SGST.

33. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
13. TIME FOR FILING APPEALS IN GST
APPELLATE TRIBUNAL
(Measures taken) The GST Council
recommended amending Section 112 of the
CGST Act, 2017 to allow the three-month
period for filing appeals before the Appellate
Tribunal to start from a date to be notified
by the Government in respect of appeal/
revision orders passed before the date of said
notification.
(Main Agenda) To give sufficient time to the taxpayers to file appeal before the Appellate
Tribunal in the pending cases.

34. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
14. NO LEVY OF INT. U/S 50 OF CGST ACT
WHERE CREDIT IS AVAILABLE IN ELECTRONIC CASH
LEDGER (ECL)
(Main Agenda) To give relief to the taxpayers from over
burden of interest.

(Measures recommended) Amendment of Rule 88B of
CGST Rules, 2017 in respect of interest under Section
50 of CGST Act on delayed filing of returns, in cases
where the credit is available in Electronic Cash
Ledger (ECL) on the due date of filing the said
return.

**(wherein the balance in electronic cash ledger is debited
while filing the pending GSTR-3B returns, shall not be part
of calculating int. u/s 50 of the CGST Act)

35. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
15. CERTAIN EXEMPTIONS RELATED TO
ACCOMMODATION SERVICES, PROVIDING RELIEF TO
STUDENTS & WORKING PROFESSIONALS
(Main Agenda) To provide relief to Students and
Working Professionals.

(Measures recommended) To create a separate entry
in notification No. 12/2017- CTR 28.06.2017 under
heading 9963 to exempt accommodation services
having value of supply of accommodation up to Rs.
20,000/- per month per person subject to the
condition that the accommodation service is supplied
for a minimum continuous period of 90 days. To
extend similar benefit for past cases.

36. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
16. SERVICES PROVIDED BY INDIAN
RAILWAYS TO GENERAL PUBLIC
To exempt the services provided by Indian
Railways to general public, namely, sale
of platform tickets, facility of retiring
rooms/waiting rooms, cloak room
services and battery-operated car
services and to also exempt the Intra-
Railway transactions. The issue for the
past period will be regularized from
20.10.2023 to the date of issue of
exemption notification in this regard.

37. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
17. STATUTORY COLLECTIONS MADE BY
REAL ESTATE REGULATORY AUTHORITY
(RERA)
Statutory collection made by Real Estate Regulatory
Authority (RERA) are exempt from GST as they fall within
the scope of entry 4 of No.12/2017-CTR dated 28.06.2017.
Circular 228/22/2024 dated 15
th
July 2024

38. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
18. ROLLING-OUT THE BIOMETRIC-BASED
AADHAAR AUTHENTICATION OF REGISTRATION APPLICANTS ON
PAN- INDIA BASIS
(Main Agenda) To strengthen the registration process in
GST, which will help in combating fraudulent input tax
credit (ITC) claims made through fake invoices.

(Measures recommended) By making amendments to
Rule 8 of the CGST Rules, 2017 to mandate the
biometric-based Aadhaar authentication for high-risk
applicants.

This will include insertion of a second proviso to sub-rule
(4A) making it mandatory for those not opting for
Aadhaar authentication to visit GST Suvidha Kendras
(GSKs) for photo capturing and document verification.

39. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
19. REDUCTION IN TCS RATE FOR SUPPLIES
MADE THROUGH ECOs FROM 1% to 0.5%
(Main Agenda)
Ease Financial Burden on Suppliers (on ECO
platform)

Encourage Digital Transactions (on ECO platform)

Support Small and Medium Enterprises (SMEs) (on
ECO platform)
(Measures recommended)
Amendment to Section 52(1) of the CGST Act, 2017
by reducing the rate of TCS from 0.5% CGST & 0.5%
SGST to 0.25% CGST & 0.25% SGST/UTGST, or, 1%
IGST to 0.5% IGST.

40. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
20. CHANGE IN DUE DATE FOR FILING OF
RETURN IN FORM GSTR -4
(Main Agenda) Aiming to reduce taxpayer burden, improve
compliance, and align with other annual requirements for
small businesses.

(Measures taken) An amendment in clause (ii) of sub-rule
(1) of Rule 62 of CGST Rules, 2017 and FORM GSTR-4 to
extend the due date for filing of return in FORM GSTR-4 for
composition taxpayers from 30th April to 30th June (2
months Extn.) following the end of the financial year. This
change will apply for returns starting from the financial year
2024-25 onwards.

41. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
21. NEW OPTIONAL FACILITY IN FORM GSTR -1A
(Main Agenda) The introduction of FORM GSTR-1A is a new
optional facility provided to taxpayers, intended to enhance the
accuracy and completeness of the data reported in the GST
returns. The key purpose is to allow taxpayers to:

Add any missed details of outward supplies for the
current tax period.

Amend any details already declared in FORM GSTR-1 for
the same period.

(Highlights & features)

FORM GSTR-1A is optional and can be filed without any
late fess, with an option of one-time submission for each
return period.

42. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
21. NEW OPTIONAL FACILITY IN FORM GSTR -1A
ADVISORY FOR FORM GSTR-1A JUL 26TH, 2024

FORM GSTR-1A would be available to all the taxpayer from August
2024, through which details furnished in FORM GSTR-01 for the
month of July 24 can be amended. The salient features of FORM
GSTR-1A are –

1. FORM GSTR-1A is an optional facility. This can be filed only
once for a particular tax period.

2. The corresponding effect of the changes made shall be reflected
in FORM GSTR-3B for the same tax period.

3. At the recipient end, the ITC for the supplies declared or amended
by the suppliers will be available for the next tax period in GSTR-
2B.

43. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
21. NEW OPTIONAL FACILITY IN FORM GSTR -1A
Advisory for FORM GSTR-1A Jul 26th, 2024

4. For the taxpayers filing FORM GSTR-1 on monthly basis:

a. FORM GSTR-1A will be available on the portal every month from
the due date of filing of FORM GSTR-1 or the actual date of filing
of FORM GSTR-1, whichever is later, and will be available till the
actual filing of corresponding FORM GSTR-3B of the same tax
period.

b. From the liability perspective, the net impact of particulars
declared or amended through FORM GSTR-1A, along with the
particulars declared in FORM GSTR-1, shall be auto-populated in
FORM GSTR-3B for the same tax period as that of FORM GSTR-
1.

44. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
22. POST SALES DISCOUNT
Circular No. 212/06/2024
•The circular addresses the mechanism for providing evidence of
compliance with Section 15(3)(b)(ii) of the CGST Act, 2017,
concerning discounts offered by suppliers through tax credit
notes issued after the supply has been affected. One of the
conditions of law is the input tax credit should be reversed by the
recipient. There is no current functionality on the common portal to
verify.
•Tax Amount exceeding INR 5,00,000-
To address this, suppliers may obtain a
certificate from the recipient of supply,
issued by a Chartered Accountant (CA)
or Cost Accountant (CMA)
•Tax Amount not exceeding INR
5,00,000 - supplier may procure an
undertaking from the recipient instead
of a CA/CMA certificate

45. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
23. EXEMPTION FOR FILING ANNUAL RETURN
IN FORM GSTR-9/9A
(Main Agenda) The primary objective of this exemption is to
reduce the compliance burden on small taxpayers, making it
easier for them to manage their GST obligations without hiring
professional services for preparing and filing annual returns.

(Implementation) The exemption is provided under the powers
conferred by Section 44 of the CGST Act and relevant
notifications issued by the Central Government.

The Council recommended that filing of annual return in FORM
GSTR-9/9A for the FY 2023-24 may be exempted for taxpayers
having aggregate annual turnover up to two crore rupees

46. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
24. ADJUSTMENT OF PAYMENTS FOR
DEMAND PRE-DEPOSIT MADE IN FORM GST DRC -03
(Key Points on adjustment of payments)

(Background)
At present where an adjudication order or an appeal order is
issued, a summary of the same is uploaded online using
FORM GST DRC-07 or FORM GST APL-04, creating a
demand. Further, a corresponding Dr. entry is posted in the
Electronic Liability Ledger (ELL) of the taxpayer.

Likewise the Taxpayers can view the created demand on
their dashboard and make the payment against the said
demand using the demand ID as a reference, and which is
then Credited against the said demand in ELL.

47. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
24. ADJUSTMENT OF PAYMENTS FOR
DEMAND PRE-DEPOSIT MADE IN FORM GST DRC -03
(Issues observed and actions proposed)
In most cases, payments intended for demands are
sometimes made through FORM GST DRC-03 without
proper linkage to specific demand orders, which leads to
difficulties in processing and adjusting these payments.

Accordingly in order to address these kind of issues FORM
GST DRC-03A, has been introduced. This form will allow
taxpayers to adjust payments made through FORM GST
DRC-03 against specific demand orders, and further ensure
that payments are correctly allocated to intended liabilities,
thereby cleaning up the Electronic Liability Ledger and
providing clarity on outstanding dues.

48. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
25. RCM ON IMPORT OF SERVICES
FROM A RELATED PERSON OR
ESTABLISHMENTS OUTSIDE INDIA
Invoice is Issued
Where full input tax credit is available to the said related domestic entity,
the value of such supply of services declared in the invoice by the
said related domestic entity may be deemed as open market value
in terms of second proviso to rule 28(1) of CGST Rules.

Invoice is Not Issued
Further, in cases where full input tax credit is available to the recipient, if
the invoice is not issued by the related domestic entity with respect to
any service provided by the foreign affiliate to it, the value of such
services may be deemed to be declared as Nil, and may be deemed
as open market value
Circular No.210/4/2024-GST

49. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
26. Warranty & Extended Warranty
Circular No. 212/06/2024
oRefers to Circular No. 195/07/2023-GST dated 17.07.2023, which
clarifies GST liability and ITC availability for warranty replacements.
oAdditional clarifications requested by trade and industry.
GST Liability and ITC Reversal for
Replaced Goods:
oClarifies that GST liability and ITC
reversal apply to both replacement
of parts and entire goods under
warranty.

oWherever "part(s)" is mentioned in
the previous circular, it should be
read as "goods or parts."
Distributor Replacements from Own
Stock:
oClarifies GST implications when
distributors replace goods or parts from
their own stock under warranty and get
replenished by the manufacturer.

oNo GST payable on such
replenishment, and no ITC reversal
required for the manufacturer.

50. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
26. Warranty & Extended Warranty
Circular No. 212/06/2024
Extended Warranty Supply:
oExtended warranty agreements made at the
time of original supply but provided by a
different supplier from the goods are separate
supplies.

oExtended warranties sold after the original
supply are considered separate services.

oGST liability on extended warranty depends
on whether it is part of a composite supply
or a separate service. If it is composite
supply, it would be taxable as Goods.

51. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
27. CLARFICATION ON VALUATION OF
CORPORATE GUARANTEE
CIRCULAR NO. 225/19/2024-GST:

Insertion of Sub-Rule (2) in Rule 28:

Notification No. 52/2023 introduced sub-rule (2) in
Rule 28 of CGST Rules on October 26, 2023, for
valuing the supply of corporate guarantee services
between related persons.

This sub-rule has been amended retrospectively from October 26, 2023, via
Notification No. 12/2024 dated July 10, 2024

52. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
27. CLARFICATION ON VALUATION OF
CORPORATE GUARANTEE
[(2) Notwithstanding anything contained in sub-rule (1), the
value of supply of services by a supplier to a recipient who is a
related person
58c
[located in India], by way of providing
corporate guarantee to any banking company or financial
institution on behalf of the said recipient, shall be deemed to be
one per cent of the amount of such guarantee offered
58c
[per
annum], or the actual consideration, whichever is higher:]

[Provided that where the recipient is eligible for full input tax
credit, the value declared in the invoice shall be deemed to be
the value of said supply of services.]

53. Let us Decode the GST CA RAMANDEEP SINGH BHATIA
27. CLARFICATION ON VALUATION OF
CORPORATE GUARANTEE
CIRCULAR NO. 225/19/2024-GST
Takeover of Existing Loans:
GST does not apply to the takeover of
existing loans unless a fresh or renewed
guarantee is issued.

Multiple Co-Guarantors:
GST is payable by each co-guarantor
proportionately on the guaranteed amount.

Intra-Group Corporate Guarantees:
Domestic guarantees are under the forward
charge mechanism. Foreign guarantees for
Indian entities fall under the reverse charge
mechanism.
Valuation When Loan is Partly or Not
Availed:
The value of the corporate guarantee is based
on the guaranteed amount, not the disbursed
loan amount.

ITC can be availed by the recipient irrespective
of the loan disbursement.

54. Disclaimer: The views and opinions expressed in this article are those of the compiler and do not necessarily reflect the official policy or position of any agency/department of the government. The same should
not be considered as legal advice in no case. All possible efforts are made to make the compilation error free and incase if there is any left , we regret for the same and request to point out the same at our mail id.
Let us understand the GST GSTIND GLOBAL SOLUTIONS LLP , RAIPUR
CA RAMANDEEP SINGH BHATIA
GSTIND GLOBAL SOLUTIONS LLP
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