In this 53rd GST council meeting, the central government is likely to consider quashing retrospective tax for the Indian online gaming industry.
In a significant development, the GST Council is set to introduce a new GST return form, GSTR-1A, during its 53rd meeting on June 22, 2024, in New Delhi. This meeting of GST council is crucial as it marks the first assembly under the newly assumed government.
Enhanced Flexibility with Same Period Amendment
The proposed Form GSTR-1A aims to provide taxpayers with enhanced flexibility by allowing amendments and additions to records within the same month or period after the initial filing of GSTR-1 but before filing GSTR-3B. Currently, once GSTR-1 is filed, taxpayers cannot make modifications within the same period, necessitating any amendments or missed entries to be reported in the subsequent return period’s GSTR-1.
Streamlined Liability Discharge Process
One of the key features of GSTR-1A is that it will enable the automatic population of amended liabilities in GSTR-3B, ensuring accurate liability discharge. This improvement is expected to simplify the reporting process and enhance the efficiency of tax compliance.
Promoting Efficient Reporting
By allowing amendments or missed records to be reported in GSTR-1A before the filing of GSTR-3B, the new form is set to promote more efficient and timely reporting. This change is anticipated to be highly beneficial for taxpayers, providing a streamlined and user-friendly approach to managing GST returns.
Other Expectations from GST Council
Apart from introducing this new form, in this 53rd GST council meeting, the central government is likely to consider quashing retrospective tax for the Indian online gaming industry. This topic could be discussed on Saturday. The proposed Section 11A under the CGST Act could waive off unpaid levies for online gaming companies, providing significant relief from pending tax notices. However, it’s important to note that the central government is unlikely to change the current 28% tax rate.
The Fitment Panel has several key suggestions. They propose referring GST on tobacco products to the Rate Rationalisation Committee. Additionally, GST exemptions might include aerated drinks and a blanket exemption for fertilizers. There are also proposed GST rate reductions, aircraft parts from 18% to 5%, solar cookers from 18% to 5%, and carton boxes for apples from 18% to 12%.
Stay tuned for further updates from the GST Council’s 53rd meeting as they discuss and potentially implement this new amendment-friendly form, GSTR-1A.
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