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GST Council Introduces Taxpayer-Friendly Measures: Interest And Penalty Waivers Announced

In another taxpayer-friendly measure, the GST Council has decided to introduce Form GSTR 1A. This new form will allow taxpayers to add information they might have missed when filing Form GSTR 1

The GST Council, in its recent meeting, has introduced several measures aimed at easing the tax burden on taxpayers. Finance Minister Nirmala Sitharaman announced on Saturday that the Council has recommended waiving interest and penalties for tax demand notices issued under Section 73 of the GST Act.

“In the case of demand notices issued for 2017-18, 2018-19, and 2019-20, interest and penalty will be waived off if tax is paid by March 31, 2025,” stated Finance Minister Nirmala Sitharaman. This move is expected to provide significant relief to taxpayers who have been facing financial difficulties due to outstanding tax liabilities.

Additionally, the GST Council has recommended extending the time limit for availing input tax credit for invoices or debit notes under Section 16(4) of the CGST Act. For financial years 2017-18 to 2020-21, the deadline for filing will be deemed as November 30, 2021, with a retrospective amendment effective from July 1, 2017. This adjustment aims to simplify compliance and rectify past discrepancies for businesses.

https://twitter.com/FinMinIndia/status/1804524612266664299

To further reduce tax litigation, the Council has set new minimum limits for filing appeals: Rs 20 lakh for the appellate tribunal, Rs 1 crore for the High Court, and Rs 2 crore for the Supreme Court. These thresholds are intended to decrease the number of minor cases reaching higher courts, thereby streamlining the judicial process and reducing the burden on taxpayers and the judicial system.

In another taxpayer-friendly measure, the GST Council has decided to introduce Form GSTR 1A. This new form will allow taxpayers to add information they might have missed when filing Form GSTR 1 and to correct any mistakes made in the original filing. This provision is designed to enhance accuracy and reduce errors in tax filings.

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