Notification Updates
Notification 20/2024-Central Tax dated 08 October 2024
The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification to amend specific Central Goods and Services Tax Rules, 2017 (CGST Rules). Some of the important amendments are highlighted as follows:
- Rule 46 – The option of raising a consolidated self-invoice in a month for a registered person has been removed for supplies covered under section 9(4) of the Central Goods and Services Tax Act, 2017 (CGST Act), where the value of such supplies exceeds rupees five thousand in a day from any or all the suppliers.
- Rule 47A – A new rule has been inserted: RCM Self Invoice to be raised within 30 days by a registered person liable to pay tax under sub-section (3) or subsection (4) of section 9 from the date of receipt of goods or services.
- Rule 96 – Sub-rule (10) of rule 96 shall be omitted.
- Rule 164 – A new rule has been inserted, procedure and conditions for closure of proceedings under section 128A in respect of demands issued under section 73 for the FY 2017-18, FY 2018-19, and FY 2019-20.
This notification shall come into effect from 01 November 2024.
The Central Government has notified the dates upto which payment of tax as per the notice, statement, or order issued under Section 73 of the CGST Act, 2017 must be made in order to avail waiver of interest, or penalty under Section 128A of CGST Act, 2017. They are as follows:
- 31 March 2025, in case of registered persons to whom notice, statement, or order has been issued under clause (a), (b) or (c) of Section 128A.
- Completion of 6 months from the date of redetermination order under Section 73 of the CGST Act, 2017, in case of a registered persons issued notices under Section 74(1) of the CGST Act pertaining to the period 01 July 2017 to 31 March 2020, which is now unsustainable and hence, an order is passed or required to be passed for determining tax as if the said notice was issued under Section 73 of CGST Act.
This notification shall come into effect from 01 November 2024.
Notification 22/2024-Central Tax dated 08 October 2024
The Central Government has notified a special procedure to be followed by registered persons for rectification of orders issued under Section 73, 74, 107, or 108 of the CGST Act, confirming the demand on wrong availment of ITC in contravention of Section 16(4) of the CGST Act, which is now available under Section 16(5) of 16(6) of CGST Act and where an appeal has not been filed against the said order.
The person should file an application for rectification within six months from the date of issuance of this notification.
Notification 23/2024-Central Tax dated 08 October 2024
The said notification seeks to waive the late fee payable under Section 47 of the CGST Act in respect of delay in furnishing information in FORM GSTR-7 for June 2021 onwards by persons required to deduct TDS. The same is as below:
- The late fee has been capped at INR 25 per day
- The total late fee has been capped at INR 1,000
- Entire late fee has been waived in cases where the TDS liability is nil.
This notification shall come into effect from 01 November 2024.
Notification 24/2024-Central Tax dated 08 October 2024
The Central Government, through this notification, amends notification no. 5/2017 – Central Tax dated 19 June 2017. In the said notification, a proviso has been inserted as below:
"Provided that nothing contained in this notification shall apply to any person engaged in the supply of metal scrap, falling under Chapters 72 to 81 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975)."
This notification shall come into effect from 10 October 2024.
Notification 25/2024-Central Tax dated 08 October 2024
The Central Government through this notification amends notification no. 50/2018 – Central Tax dated 13 September 2018. In the said notification, a new clause has been inserted as below:
"(d) any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person."
Further, the following proviso shall be substituted:
"Provided also that nothing in this notification shall apply to the supply of goods or services or both, which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of Section 51 of the said Act, except the person referred to in clause (d) of this notification."
This notification shall come into effect from 10 October 2024.
Notification 05/2024-Central Tax (Rate) dated 08 October 2024
The said notification seeks to amend Notification 01/2017-Central Tax (Rate) dated 28 June 2017, with effect from 10 October 2017. Through this notification, GST rates have been decreased/increased:
- Drugs Trastuzumab Deruxtecan, Osimertinib, and Durvalumab have now been included in List 1 of Schedule I, and the GST has been reduced from 12% to 5%
- GST rate on extruded or expanded products, savory or salted (other than un-fried or un-cooked snack pellets), is now reduced from 18% to 12%
- GST rate on car seats has been increased from 18% to 28%
On a similar line to the Central Tax (Rate) notification, the Central Government has also issued IGST and UTGST notifications, as below:
Notification 05/2024-Integrated Tax (Rate) dated 08 October 2024
Notification 05/2024-Union territory Tax (Rate) dated 08 October 2024
The said notification seeks to amend Notification 4/2017- Central Tax (Rate) dated 28 June 2017, with effect from 10 October 2017. Through this notification, applicability of RCM has been introduced to metal scrap falling under Chapters 72 to 81 in the first schedule to the Customs Tariff Act, 1975 when supplied by unregistered person to an registered person.
On a similar line to the Central Tax (Rate) notification, the Central Government has also issued IGST and UTGST notifications, as below:
Notification 06/2024-Integrated Tax (Rate) dated 08 October 2024
Notification 06/2024-Union Territory Tax (Rate) dated 08 October 2024
Notification 07/2024-Central Tax (Rate) dated 08 October 2024
The said notification seeks to amend Notification 11/2017-Central Tax (Rate) dated 28 June 2017, with effect from 10 October 2017. Through this notification, the GST rate on transportation of passengers in a helicopter on a seat share basis is notified as 5% provided ITC on goods used in supplying the service has not been availed
On a similar line to the Central Tax (Rate) notification, the Central Government has also issued IGST and UTGST notifications, as below:
Notification 07/2024-Integrated Tax (Rate) dated 08 October 2024
Notification 07/2024-Union Territory Tax (Rate) dated 08 October 2024
Notification 08/2024-Central Tax (Rate) dated 08 October 2024
The said notification seeks to amend Notification 12/2017-Central Tax (Rate) dated 28 June 2017, with effect from 10 October 2017. The amendments provides exemption to below services:
- Supply of various services such as renting charges on metering equipment, testing meters/transformers/capacitors releasing electricity connection, shifting of meters/service lines, issuing duplicate bills etc, which are incidental or ancillary to the supply of transmission and distribution of electricity.
- Research and development services by a government entity or research association, university, college, etc, notified under clauses (ii) or (iii) of subsection (1) of section 35 of the Income Tax Act, 1961, against grants received provided that the entity, association, university, college is so notified at the time of supply.
- Affiliation services provided by Central or State Educational Board or Councils or similar bodies to Government schools.
On a similar line to the Central Tax (Rate) notification, the Central Government has also issued IGST and UTGST notifications, as below:
Notification 08/2024-Union Territory Tax (Rate) dated 08 October 2024
Notification 08/2024-Integrated Tax (Rate) dated 08 October 2024
Notification 09/2024-Central Tax (Rate) dated 08 October 2024 and Corrigendum dated 22 October 2024
The said notifications, with effect from 10 October 2024, introduce RCM applicability on renting of any immovable property other than a residential dwelling by an unregistered person to the registered person.
On a similar line to the Central Tax (Rate) notification, the Central Government has also issued IGST and UTGST notifications, as below:
Notification 09/2024-Union Territory Tax (Rate) dated 08 October 2024
Notification 09/2024-Integrated Tax (Rate) dated 08 October 2024
Circular Updates
Circular 234/28/2024 dated 11 October 2024
- Supply of affiliation services by universities to colleges and by Central or State educational boards to non-government schools are not covered under exemption entries and are taxable at the rate of 18%. Payment of GST to schools for the period 01 July 2017 to 17 June 2021 is to be regularized on "as is where is" basis.
- Directorate General of Civil Aviation (DGCA) approved flying training courses conducted by approved Flying Training Organizations(FTOs), which have been exempted under Sl. No. 66 of Notification No. 12/2017.
- Payment of GST on transportation of passengers in a helicopter on a seat share basis for the period 01 July 2017 to 09 October 2024 is to be regularized on an "as is where is" basis. W.e.f. 10 October 2024, the said service is leviable @ 5%.
- Ancillary services such as loading/unloading, packing, unpacking, transshipment, and temporary warehousing provided in relation to the transport of goods by road are to be treated as composite supply. However, if the said services are not provided in the course of transportation and are invoiced separately, they shall not be treated as composite supply.
- Payment of GST on import of services by any establishment of foreign airlines company from a related person or any other establishment outside India for 01 July 2017 to 09 October 2024 is to be regularized on an "as is where is" basis. W.e.f. 10 October 2024, the said service is exempt subject to certain conditions.
- Preferential Location charges(PLC) paid along with consideration for construction of residential/commercial/industrial complex before the issuance of completion certificate shall be treated as composite supply with construction services being the principal supply.
- Payment of GST on services provided by an electricity transmission or distribution utility as composite supplies for 01 July 2017 to 09 October 2024 is to be regularized on an "as is where is" basis. W.e.f. 10 October 2024, the said service is exempt.
- Payment of GST on service of granting theatrical rights by distributors to exhibitors for 01 July 2017 to 30 September 2021 is to be regularized on an "as is where is" basis.
To view the full article, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
