GST Updates from 1st November 2024 | GST Changes from 1st November 2024 | New GST Changes and Updates | CBIC Changes

The Indian GST regime is set to undergo significant GST changes effective 1st November 2024. These GST updates are aimed at streamlining processes, enhancing compliance, and providing relief to taxpayers.

Here are the key GST changes from 1 November 2024 onwards that you need to know:

Power to Waive Off Unlevied or Short-Levied GST

The government has the power to waive GST that was not levied or was short-levied due to a general practice. This provision provides an opportunity for taxpayers to rectify past errors or omissions without incurring penalties. It also helps in streamlining the GST compliance process.

CBIC Clarifies Waiver of Interest and Penalty Under CGST Act

The CBIC has introduced Section 128A under the CGST Act, effective November 1, 2024. This section offers taxpayers significant relief by waiving interest and penalties on demands raised under Section 73 for the financial years 2017-18, 2018-19, and 2019-20, subject to specific conditions. Taxpayers must pay the full tax amount demanded by March 31, 2025, to avail themselves of the waiver. The newly added Rule 164 outlines the procedure to apply for this relief.

Form GST DRC-03A

In a major step toward simplifying tax compliance, the introduction of Form DRC-03A on July 10, 2024, via GST Notification No. 12/2024, has added a new layer of convenience to the GST regime. This new form is designed to help taxpayers manage their tax liabilities more effectively, primarily through the appropriation of payments made via the original Form GST DRC-03.

RCM Time of Supply Rule Changes

The CBIC has made significant changes to the Reverse Charge Mechanism (RCM) rules under the Goods and Services Tax (GST) in India, effective from November 1, 2024. These changes impact how businesses account for RCM transactions and claim input tax credit (ITC). These updates aim to ensure stricter compliance and streamline the taxation process under RCM, especially concerning self-invoicing practices.

Time Limit for Issuing Self-Invoices

To ensure timely compliance, a 30-day time limit has been imposed on recipients to issue invoices under the Reverse Charge Mechanism (RCM) from the date of receipt of supplies. This will help with accurate tax calculation and timely remittance.

Restriction on Input Tax Credit (ITC) for Section 74 Demands

The restriction on the availability of ITC in cases where tax is paid under Section 74 of the CGST Act has been limited to demands up to FY 2023-24. This provides some relief to taxpayers who may have faced ITC restrictions in the past.

Restriction on Refund of Unutilized ITC and IGST Paid on Zero-Rated Supplies

A new restriction has been introduced on the refund of unutilized ITC and IGST paid on account of zero-rated supply of goods where such supply is subject to export duty. This change aims to prevent misuse of the refund mechanism.

Introduction of New GST Forms SPL-01 and SPL-02

Two new GST forms, SPL-01 and SPL-02, have been introduced to claim the exemption of interest and penalties under Section 128A of the GST Act, starting from January 2025. Taxpayers will need to utilize these forms to avail themselves of the benefits of the waiver.

Stricter E-invoice Time Limits

From April 2025, taxpayers will be required to upload e-invoices within 30 days of issuance. Failure to comply with this stricter timeline will result in automatic rejection of the invoices.

Transfer of Anti-Profiteering Cases to GSTAT

Anti-profiteering cases under Section 171 of the CGST Act will now be handled by the Goods and Services Tax Appellate Tribunal (GSTAT). This transfer is expected to streamline the adjudication process and provide faster resolution of disputes.

These significant GST changes from 1st November 2024 onwards will have a far-reaching impact on various sectors of the Indian economy. Businesses and taxpayers should carefully review these changes and ensure compliance to avoid penalties and legal issues.

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