In the article, we discussed the important changes in the GST rules that are part of the union budget for 2024. The Union Budget 2024-25 was presented by the Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman in Parliament on July 23, 2024.
Latest Changes of GST Law in Union Budget 2024
Mentioned below are the most recent amendments to the GST Law as summarised in the Union Budget for FY 2024-25:
Adding New GST Section 74A
To furnish the common time limit for the issuance of the demand notices and the orders no matter whether the matter comprises fraud, suppression, willful misstatement, etc., or not, for a period of Financial year 2024-25 onwards.
Modification in GST Sections 73 and 74
To furnish the distinct time limit for issuing the demand notices and the orders related to the duration up to FY 2023-24.
New Sub-section (5) in GST Section 16
Extending the due date to claim ITC for invoices or debit notes under section 16(4) of the CGST Act, to 30th November 2021 for FY 2017-18, 2018-19, 2019-20, and 2020-21. This extension applies to returns filed in FORM GSTR-3B.
Modification in GST Section 112
Time to file appeals in GST Appellate Tribunal, to permit 3 months period for filing appeals before GSTAT to begin from a date to be announced via the Government for appeals/ revision orders passed. It shall come into force from 01.08.2024.
Furthermore, decreasing the amount of pre-deposit required to be paid for filing the GSTAT appeals.
Modification in GST Section 122
E-commerce operators Penalty provisions
Adding New Sub-section (5) in Section 16
Conditionally the same Amendment relaxes for cases where returns from the date of registration cancellation to revocation are filled within 30 days of the revocation order.
Modification in GST Section 107 & Section 20 of the IGST Act
To diminish the amount of pre-deposit needed to be paid for filing of an appeal under GST.
Adding New GST Section 128A
For exemption of interest and penalty for demand notices issued u/s 73, who pays full tax up to 31.03.2025.
Modification in GST Section 140
To permit the transitional credit for service invoices obtained via the IGST before the appointed date. The amendment shall hold a retrospective effect from 01.07.2017.
Adding New Section 11A
To authorize the government to regularize the former differences in tax practices via issuing a notification, ensuring that businesses are not unduly penalized for pursuing a generally accepted but wrong tax practice.
Modification in Section 171 of the CGST Act 2017
To present a sunset clause for Anti-Profiteering measures and align these matters to the GSTAT (GST Tribunal)
Schedule III Related to No Supply
Co-insurance premium apportioned via lead insurer to the co-insurer towards the supply of insurance service via lead and co-insurer to the insured in coinsurance agreements and transactions of ceding commission/ re-insurance commission between insurer and re-insurer.
Modification in GST Section 54 & Section 16 of the IGST Act
To limit the IGST refunds for the goods within export duty, along with those exported or supplied to SEZs, irrespective of with or without tax payment.
Modification in GST Section 39
The enrolled individual ought to deduct tax under section 51 and should file the return in Form GSTR-7 monthly even when no tax has been deducted.
Other Modification
Also, there is a new amendment in section 9 of the CGST Act 2017 by the finance bill 2024.
