Important Changes Proposed in 55th GST Council Meeting:
a. Sponsorship Services provided by Body Corporates will come under Forward Charge Mechanism (instead of RCM).
b. Composition taxpayers are not required to pay GST under RCM in case of taking commercial property on rent from Unregistered Persons.
c. All Sale of Old Motor Vehicles (any cc/length/fuel type) will now be charged @ 18% on the ‘margin’ amount.
d. GST will not be applicable on ‘penal charges’ levied by Banks/NBFCs for non-compliance of loan terms.
e. Goods warehoused at SEZ, supplied directly to other person before clearance, will not be treated as Supply (like in High Seas Sales).
f. ITC will be available and allowed to the recipient on the goods delivered/ Installed by Supplier at ‘Supplier’s Premises’ (e.g. Tools in Automobile Industry).
g. Late fees in case of Delay in filing of GSTR-9C from 17-18 to 22-23 is capped upto the amount of late fees payable till delayed filing of GSTR-9. If late fees has been paid at the time of delayed filing of GSTR-9 or else GSTR-9 is filed within the due date, no Late Fees will be levied on filing of GSTR-9C provided same is filed upto 31.03.2025.
h. Under Blocked Credit Section 17(5), the phrase ‘Plant or Machinery’ will be replaced to ‘Plant and Machinery’ to deny ITC in respect of ‘Building’ which was considered as ‘Plant’ by a Supreme Court Judgement. It will be a retrospective amendment from 01.07.2017.
i. Pre-Deposit to file an appeal with Appellate Authority/ Tribunal (where case involves only Penalty) has been reduced to 10%.
j. ISD mechanism to include Inter-State RCM supplies and the same will also be governed by ISD distribution mechanism.
k. Legal Framework will be given for generation of GSTR-2B based on Taxpayer’s action in IMS.
l. Amendment will be made in law to specifically require the reversal of ITC by recipient if a ‘Credit Note’ is issued by the Supplier. This will enable the supplier in reduction of Outward tax liability validated with IMS mechanism.
m. Amendment will be made in law to provide that GSTR-3B can be filed ONLY AFTER generation of GSTR-2B for the relevant period.
