Major Key Changes of GST Law in Union Budget 2024-25
In this article, we will discuss the significant changes in the GST rules as part of the Union Budget for 2024. The Union Budget 2024-25 was presented by the Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman, in Parliament on July 23, 2024.
Latest Changes of GST Law in Union Budget 2024
Below are the most recent amendments to the GST Law summarized in the Union Budget for the financial year 2024-25:
Adding New GST Section 74A
To provide a uniform time limit for the issuance of demand notices and orders, whether involving fraud, suppression, willful misstatement, etc., or not, for the financial year 2024-25 onwards.
Modification in GST Sections 73 and 74
To establish separate time limits for issuing demand notices and orders related to the period up to FY 2023-24.
New Sub-section (5) in GST Section 16
Extending the due date to claim ITC for invoices or debit notes under section 16(4) of the CGST Act until 30th November 2021 for FY 2017-18, 2018-19, 2019-20, and 2020-21. This extension applies to returns filed in FORM GSTR-3B.
Modification in GST Section 112
Allowing a 3-month period for filing appeals before GSTAT to commence from a date to be announced by the Government for appeals/revision orders passed. This provision will be effective from 01.08.2024.
Modification in GST Section 122
Decreasing the pre-deposit required for filing GSTAT appeals and introducing penalty provisions for e-commerce operators.
Adding New Sub-section (5) in Section 16
Providing relaxation for cases where returns from the date of registration cancellation to revocation are filed within 30 days of the revocation order.
Modification in GST Section 107 & Section 20 of the IGST Act
Reducing the pre-deposit amount required for filing an appeal under GST.
Adding New GST Section 128A
Exempting interest and penalty for demand notices issued under section 73 for those who pay full tax by 31.03.2025.
Modification in GST Section 140
Allowing transitional credit for service invoices received through IGST before the appointed date, with retrospective effect from 01.07.2017.
Adding New Section 11A
Authorizing the government to rectify previous tax practice differences by issuing a notification to prevent undue penalties on businesses for adhering to incorrect but widely accepted tax practices.
Modification in Section 171 of the CGST Act 2017
Introducing a sunset clause for Anti-Profiteering measures to align with the GSTAT (GST Tribunal).
Schedule III Related to No Supply
Clarifying co-insurance premium allocations in coinsurance agreements and transactions related to insurance services and commissions.
Modification in GST Section 54 & Section 16 of the IGST Act
Limiting IGST refunds for goods subject to export duty, including those supplied to SEZs, regardless of tax payment.
Modification in GST Section 39
Requiring registered individuals to deduct tax under section 51 and file monthly returns in Form GSTR-7 even when no tax is deducted.
Other Modifications
Additionally, there is a new amendment in section 9 of the CGST Act 2017 as per the finance bill 2024.
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