Important GST Council Recommendations during 54th GSTC Meeting:
1. Reverse Charge Mechanism (RCM) to be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
2. A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply
3. To bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM).
4. Procedure and conditions for waiver of interest or penalty or both, in respect of tax demands under section 73 of CGST Act, 2017 for FYs 2017-18, 2018-19 and 2019-20 as per section 128A of CGST Act, 2017- 31st March 2025 will be cut-off date to avail benefit of this section.
5. Providing a mechanism for implementation of newly inserted Sec 16(5) & 16(6) of CGST Act, 2017: a special procedure for rectification of orders may be notified
6. Implementation of B2C E-invoicing: The GST Council recommended roll out of a pilot for B2C e-Invoicing. The pilot will be rolled out on voluntary basis in selected Sectors and States.
7. Invoice Management System and new ledgers: These enhancements include the introduction of a Reverse Charge Mechanism (RCM) ledger, an Input Tax Credit Reclaim ledger and an Invoice Management System (IMS). Taxpayers would be given the opportunity to declare their opening balance for these ledgers by 31st October 2024.
