• Notification Date: 21.09.2024
• Notification No:

Latest GST News Updates in the August Month 2024

The Goods and Services Tax (GST) was announced in July 2017 in India, replacing several taxes such as VAT, excise duty, and service tax. This is an inclusive indirect tax system. GST is charged on the supply of goods and services, and the rate varies depending on the type of goods or services supplied. GST is a destination-based tax. In the state where the goods or services are consumed, tax revenue is remitted to these states. The GST Council, consisting of legislatures of the central and state governments, decides on the tax rates and changes in the GST law. 

Latest Notification Released in August 2024: 

The latest updates purpose to increase transparency, reduce complexity, and ensure better tax administration. There are some significant GST updates made to the GST framework, reflecting the ongoing efforts to update and improve the tax system in August 2024. These changes will impact several sectors and affect businesses of all sizes. From new GST compliance requirements to legal amendments. 

GST News in the August Month:  

Going forward, changes in GSTR-1 will be allowed within the same tax period. The GST Council has approved the implementation of features in the new form GSTR-1A that will enable taxpayers to provide: Details of GSTR-1A for the current tax period/IFF for the 1st and 2nd months of the quarter were not provided before filing GSTR-3B. 

In GSTR-1 reporting of B2C supplies:  

The inception for reporting inter-state business-to-consumer (B2C) supplies on an invoice basis in table 5 of GSTR-1 will be reduced from Rs 2.5 lakh to Rs 1 lakh. 

Revised deadline for filing GSTR-4:

The deadline for filing GSTR-4 by taxpayers will be extended from the current April 30 to June 30 2024 from financial year 2024-25. 

Reduction in TCS Rate:  

Electronic Commerce Operators (ECOs) were required to charge tax at source (TCS) at 1% (0.5% as per CGST and SGST/1% as per IGST) on net taxable supplies under Section 52(1) of the CGST Act and are advised to reduce the same to 0.5% (0.25% for CGST, 0.25% for SGST/UTGST/0.5% as per IGST). 

New Modification to Section 16(4): 

The deadline for claiming ITC on all GSTR-3B invoices or debits filed up to November 30, 2021 (applicable for financial years 17-18, 18-19, 19-20, and 21) can be made on November 30, 2021 with retrospective effect from July 1, 2017. Further, Section 16(4) is relaxed for the period from the date of registration cancellation/effective date of deregistration to the date of revocation of registration cancellation, provided that the registered person files a return within 30 days from the date of registration cancellation. A return must be filed within 30 days from the date of registration cancellation. 

Mandatory to filing GSTR-7: 

GSTR-7 is compulsory to filing even if Tax Deducted at Source (TDS) has not been deducted or reported on an invoice basis, and no late fee will be charged in case of non-filing. 

Amendment to CGST Rule 88B:  

The GST Council has recommended that interest should not be levied on the amount shown in the electronic cash reserve at the time of filing, and in case of delay in filing of GSTR-3B and in case of delay in filing of the said return, the said return is debited. 

New Section 128A: 

The GST Council has exempted interest and penalty on demand for payment under Section 73 of CGST (applicable for financial years 17-18, 18-19, and 19-20) where no fraud, oppression, or incorrect information was involved. Possible. Applicable if the taxpayer pays the entire amount due on demand by 31 March 2025.