{"id":2292,"date":"2025-01-22T12:12:33","date_gmt":"2025-01-22T12:12:33","guid":{"rendered":"https:\/\/www.rnm.in\/blog\/?p=2292"},"modified":"2025-01-30T10:55:38","modified_gmt":"2025-01-30T10:55:38","slug":"gst-updates-december-2024","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/gst-updates-december-2024\/","title":{"rendered":"Indirect Tax and GST Updates December 2024"},"content":{"rendered":"<h2>GST Calendar \u2013Compliances for December \u20192024<\/h2>\n<h2><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Nature of Compliances<\/b><\/td>\n<td><b>Due Date<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-7 (Tax Deducted at Source \u2018TDS\u2019)\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 10,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-8 (Tax Collected at Source \u2018TCS\u2019)\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 10,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-1\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 11,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">IFF- Invoice furnishing facility (Availing QRMP)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 13,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-6 Input Service Distributor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 13,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-2B (Auto Generated Statement)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 14,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-3B\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 20,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-5 (Non-Resident Taxable Person)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 20,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GSTR-5A (OIDAR Service Provider)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 20,2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">PMT-06 (who have opted for QRMP scheme)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">January 25,2025<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Proposed Amendments to the CGST Act -17(5)<\/h2>\n<p><b>Revision to Section 17(5)(d)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0A retrospective modification is suggested for section 17(5)(d) of the CGST Act, replacing the phrase <\/span><b>\u2018plant or machinery\u2019<\/b><span style=\"font-weight: 400;\"> with <\/span><b>\u2018plant and machinery.\u2019<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Following this amendment, the recent Supreme Court judgment (Civil Appeal No. 2948 of 2023, dated 3 October 2024), which held that the definition of plant and machinery does not apply to section 17(5)(d), will be rendered partially ineffective.<\/span><\/li>\n<\/ul>\n<h2>\u00a0Relief in Appeals Limited to Penalties<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pre-deposit requirement for appeals before an appellate authority reduced from 25% to 10% for cases involving only penalties.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New proviso recommended to be added to section 112(8) of the CGST Act, setting a 10% pre-deposit requirement for appeals before an appellate tribunal in penalty-only cases<\/span><\/li>\n<\/ul>\n<h2>Updates to the Input Service Distributor (ISD) Framework<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective <\/span><b>1 April 2025<\/b><span style=\"font-weight: 400;\">, sections 2(61) and 20(1) of the CGST Act will explicitly incorporate inter-state reverse charge mechanism (RCM) transactions under the ISD mechanism, covering supplies taxed under sections 5(3) and 5(4) of the IGST Act, 2017.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corresponding amendments will also be made to section 20(2) of the CGST Act and rule 39(1A) of the CGST Rules to align with these changes<\/span><\/li>\n<\/ul>\n<h3>\u00a0Streamlined Tax Payments for Non-Registered Persons<\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u00a0<\/b><span style=\"font-weight: 400;\">A new rule 16A is proposed to enable tax authorities to issue temporary identification numbers for individuals not\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0\u00a0\u00a0registered under GST but required to make tax payments under rule 87(4) of the CGST Rules.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rule 87(4) and Form GST REG-12 will be revised to reflect this provision<\/span><\/li>\n<\/ul>\n<h3>\u00a0Flexibility for Composition Scheme Taxpayers<\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rule 19 of the CGST Rules is set to be revised to permit taxpayers under the composition scheme to update their \u2018category of registered person\u2019 via Table 5 of Form GST CMP-02.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, such updates are managed through Form GST REG-14.<\/span><\/li>\n<\/ul>\n<h2>Enhancements to the Invoice Management System (IMS)<\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Section 38 of the CGST Act and rule 60 of the CGST Rules will be revised to establish a legal framework for generating Form GSTR-2B based on taxpayer activities within the IMS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Section 34(2) of the CGST Act will be modified to permit the reversal of input tax credit (ITC) by recipients, enabling a corresponding reduction in suppliers\u2019 tax liabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new rule 67B will outline the procedure for adjusting suppliers\u2019 tax liabilities using credit notes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Section 39(1) of the CGST Act and rule 61 of the CGST Rules will be updated to ensure that Form GSTR-3B can only be submitted after Form GSTR-2B becomes accessible on the GST portal.<\/span><\/li>\n<\/ul>\n<h2>GST Council Meeting: Industry Anticipates Key Decisions on Tax Relief and Higher Levies<\/h2>\n<p><span style=\"font-weight: 400;\">The upcoming GST Council meeting has drawn significant attention from industry stakeholders as discussions are expected to center around critical policy changes. Two major proposals are likely to dominate the agenda:<\/span><\/p>\n<h3>Tax Relief on Health Insurance Premiums<\/h3>\n<p><span style=\"font-weight: 400;\">Industry representatives and policy experts have advocated for a reduction in GST rates on health insurance premiums, currently taxed at 18%. The push for relief aims to make health insurance more affordable and accessible to a larger section of the population, aligning with the government&#8217;s goal of universal healthcare coverage. If approved, this measure could boost insurance penetration in the country while providing financial respite to policyholders.<\/span><\/p>\n<h3>Higher GST on Luxury Items<\/h3>\n<p><span style=\"font-weight: 400;\">In a bid to streamline tax revenues and discourage non-essential consumption, the Council may deliberate on increasing GST rates on luxury goods. This could include items such as high-end automobiles, luxury watches, and premium services. The move is seen as an attempt to balance fiscal priorities while promoting equity in taxation.<\/span><\/p>\n<h2>\u00a0Recent Developments in India&#8217;s GST Landscape<\/h2>\n<h3>Taxation on Popcorn Sparks Debate<\/h3>\n<p><span style=\"font-weight: 400;\">The GST Council&#8217;s recent decision to impose differential tax rates on popcorn has led to public and political debate. The rates are as follows:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Non-branded salted popcorn: <\/b><span style=\"font-weight: 400;\">5% GST<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pre-packaged and branded popcorn<\/b><span style=\"font-weight: 400;\">: 12% GST<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Caramel popcorn:<\/b> <span style=\"font-weight: 400;\">18% GST<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Critics argue that such distinctions add complexity to the tax system, deviating from the original intent of GST as a &#8216;Good and Simple Tax.&#8217;\u00a0<\/span><\/p>\n<h3>GST on Online Food Delivery Services<\/h3>\n<p><span style=\"font-weight: 400;\">The GST Council is considering a proposal to reduce the GST rate on food delivery charges from e-commerce platforms like Zomato and Swiggy from 18% to 5%. This change aims to make food delivery services more affordable for consumers.\u00a0<\/span><\/p>\n<h3>Aviation Fuel Excluded from the GST Regime<\/h3>\n<p><span style=\"font-weight: 400;\">The GST Council has rejected the aviation industry&#8217;s proposal to include aviation turbine fuel (ATF) under the GST regime. Currently, state governments determine the taxation of ATF, leading to varying rates across the country. The decision maintains the status quo, with states retaining control over ATF taxation.<\/span><\/p>\n<h3>GST on Used Vehicles<\/h3>\n<p><span style=\"font-weight: 400;\">The Council has decided to impose an 18% GST on the sale of all used or old vehicles, including electric vehicles, when sold by registered dealers. Sales conducted directly between individuals will not attract this tax. This move aims to standardize the taxation process in the second-hand vehicle market.<\/span><\/p>\n<p><strong>Related Services: <a href=\"https:\/\/www.rnm.in\/indirect-tax-service\" target=\"_blank\" rel=\"noopener\">GST Consultancy Services<\/a>\u00a0 <a href=\"https:\/\/www.rnm.in\/tax-regulatory-service\" target=\"_blank\" rel=\"noopener\">Tax Preparation Services<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST Calendar \u2013Compliances for December \u20192024 Nature of Compliances Due Date GSTR-7 (Tax Deducted at Source \u2018TDS\u2019)\u00a0 January 10,2025 GSTR-8 (Tax Collected at Source \u2018TCS\u2019)\u00a0 January 10,2025 GSTR-1\u00a0 January 11,2025 IFF- Invoice furnishing facility (Availing QRMP) January 13,2025 GSTR-6 Input Service Distributor January 13,2025 GSTR-2B (Auto Generated Statement) January 14,2025 GSTR-3B\u00a0 January 20,2025 GSTR-5 (Non-Resident Taxable Person) January 20,2025 GSTR-5A [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[15,253],"tags":[],"class_list":["post-2292","post","type-post","status-publish","format-standard","hentry","category-gst-department","category-indirect-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indirect Tax and GST Updates December 2024<\/title>\n<meta name=\"description\" content=\"Explore December 2024 GST updates: key changes, CGST Act amendments, penalty relief, IMS enhancements, and recent developments in India&#039;s GST landscape. 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