Major CBIC Indirect Tax Notifications: October 2024

The Central Board of Indirect Taxes (CBIC) issued Various Notifications dated 8^th & 9^th October 2024.These CBIC Indirect Tax Notifications cover relief measures, procedural updates, and amendments to CGST rules. The notifications are summarized as under:

Waiver of GSTR 7 Late Fees: CBIC Indirect Tax

Waiver of Late fees on delayed filling of GSTR 7 u/s 51 of CGST Act, 2017 – Notification No. 23/2024- Central Tax

• CBIC has given a relief to the taxpayers who are required to file details of TDS deducted u/s 51 of CGST Act, 2017 in FORM GSTR 7.
• It is providing waiver of late fees on delayed return from June 2021 onwards.
• The Late fees is capped at INR 25/- per day till the delay continues, and maximum late fees is INR 1,000.
• Full waiver of late fees where tax deducted is Nil in the month.
• The CBIC Indirect Tax Notification shall come into force from 1^st November, 2024

Special Procedure for Rectification of CGST Orders

Special procedure for rectification of certain specified orders issued under sections 73, 74, 107 or 108 of CGST Act – Notification No. 22/2024-Central Tax

• It provides a streamlined procedure for filing a rectification application for orders issued u/s 73 or section 74 or section 107 or section 108 of CGST Act, 2017.
• A taxpayer is allowed to file an application for rectification of order in electronic form on the common portal within six months from the date of issue of this notification.
• The procedure applies to registered persons against whom an order has been issued confirming a demand for wrongful availment of input tax credit (ITC) in violation of Section 16(4). In other words, cases where ITC initially disallowed, is now available under Section 16(5) or Section 16(6), and the person has not filed an appeal against the original order.
• Once the rectification application is filed, the proper officer must upload a summary of the rectified order electronically within three months from such application in FORM GST DRC- 08 for orders under Section 73 or Section 74 and FORM GST APL-04 for orders under Section 107 or Section 108. This procedure is part of the CBIC Indirect Tax measures to streamline compliance.

GST Payment Deadline Extension under Section 128A

GST Payment deadline extension for Waiver of Interest or penalty or both u/s 128A – Notification No. 21/2024

• The notification provides extended dates for payment of GST for waiver of interest and penalty on demand notices issued under Section 73 of the CGST Act for financial years 2017-18, 2018-19, and 2019-20.
• The due date for payment of tax is 31^st March, 2025 for registered persons who have received notices or statements or orders referred to in clause (a), (b), or (c) of Section 128A of the CGST Act and 6 months from date of redetermination of order for registered persons who have received notice u/s 74 in respect of the period mentioned in Section 128A(1).
• The notification shall come to effect from 1^st November 2024, This CBIC Indirect Tax advisory ensures clarity on extended deadlines for taxpayers.

Notification Relating to Reverse Charge Mechanism (RCM)

Notification Relating to RCM – Notification No. 24/2024-Central Tax

• CBIC has issued this notification to amend the original Notification No. 5/2017-Central Tax dated June 19, 2017.
• Reverse charge mechanism will be applied to the supply of metal scrap from unregistered to registered persons.
• Additionally, a TDS of 2% will be imposed on the supply of metal scrap in B2B transactions.
• This amendment is effective from October 10, 2024.

Amendments to CGST Rules 2017: CBIC Indirect Tax Updates

Amendments to certain rules of Central Goods and services Tax rules, 2017- Notification No. 20/2024-Central Tax dated 08.10.2024. CBIC has issued this notification to make amendments in the Central Goods and Services Tax Rules, 2017. The Amendments are as under:

Rule 47A: Tax Invoice Time Limit

Insertion of New Rule 47A specifying the time limit for issuance of tax invoice by the registered person required to issue invoice under section 31(3)(f) of the said Act i.e. persons liable to pay tax under reverse charge, they shall issue the invoice within a period of 30 days from receipt of supply of goods or services.

Rule 66: GSTR 7 Filing Deadline

Amendment in rule 66 in sub rule (1), clarifies that FORM GSTR 7 shall be submitted on or before the tenth day of succeeding month w.e.f 1^st November 2024.

Rule 164: Closure of Proceedings under Section 128A

Insertion of Rule 164 providing procedure and conditions with respect to closure of proceedings under section 128A in respect of demands issued under section 73.

• A person eligible for waiver of interest or penalty in relation to a notice or statement under Section 128A (1)(a) can file an application in FORM GST SPL-01 electronically, along with details of notice and payments made through FORM GST DRC-03. Whereas for orders under section 128A (1)(b) or (c) the application must be made in FORM GST SPL-02 with separate application of transfers made through FORM GST DRC -03 as provided.
• The time limit is three months or six months as applicable for such applications. The application must be accompanied by evidence showing withdrawal of any appeal or writ petition. If the withdrawal order has not been issued, the application for withdrawal must be submitted, and the order must be uploaded within one month of issuance.
• If the proper officer believes that the applicant is not eligible for a waiver, they must issue a notice in FORM GST SPL-03 within three months from the date of receipt of the said application. The applicant can respond via FORM GST SPL-04 within one month.
• Order in FORM GST SPL-05 for acceptance of application and order in FORM GST SPL-07 for rejection of such application shall be issued by the proper officer, further non-issuance of order within the prescribed time limit, the application shall be deemed approved.
• Furthermore, if the authority held that rejection of waiver application was right, the applicant shall file an undertaking in FORM SGT SPL-08 stating that he has neither filed nor intend to file any appeal against the said order within a period of 3 months from date of issue of order.
• Amendment in FORM GSTR 9 – In the said amendment in table 8-part A, ITC shall be auto-populated as per GSTR 2B.

Amendments to GSTR 9 and Pre-Deposit Limits

Amendments made in pre-deposit limit for FORM GST APL-01 and FORM GST APL-05 w.e.f. 1^st November 2024. The pre-deposit limit is revised to 10% of disputed tax/cess, but not exceeding:

• ₹20 crore each in respect of CGST, SGST, or cess
• ₹40 crore in respect of IGST