Union Budget 2024-2025 Highlights

The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman introduce the Union Budget 2024-25 in Parliamenton July 23, 2024. Highlights of the changes under GST Law are as follows are under:

1. Amendment in Section 9 of the CGST Act 2017:Excludes undenatured extra neutral alcohol or rectified spirit used for the manufacture of alcoholic liquor for human consumption from the purview of GST.
2. Insertion of Section 11A:Empowers the government to regularize past discrepancies in tax practices by issuing notifications, ensuring businesses are not unduly penalized for following a generally accepted but incorrect tax practice.
3. Insertion of Sub-section (5) in Section 16, with retrospective effect from 01.07.2017:
   • Extends the deadline for claiming Input Tax Credit (ITC) for invoices or debit notes under Section 16(4) of the CGST Act to 30th November 2021, for Financial Years 2017-18, 2018-19, 2019-20, and 2020-21. This extension applies to returns filed in FORM GSTR-3B.
   • Conditionally relaxes deadlines for cases where returns from the date of registration cancellation to revocation are filed within 30 days of the revocation order.
4. Amendment in Section 39 of the CGST Act, 2017: Requires registered persons who need to deduct tax under Section 51 to file returns in FORM GSTR-7 monthly, even if no tax has been deducted.
5. Amendment in Section 54 of the CGST Act and Section 16 of the IGST Act: Restricts IGST refunds for goods subject to export duty, including those exported or supplied to SEZs, regardless of whether tax was paid or not.
6. Schedule III to the CGST Act (No Supply): Co-insurance premium apportioned by the lead insurer to the co-insurer for the supply of insurance service and transactions of ceding commission/re-insurance commission between insurer and re-insurer.
7. Amendment in Sections 73 and 74 of the CGST Act, 2017: Different time limits for issuance of demand notices and orders will pertain to the period up to the Financial Year 2023-24.
8. Insertion of New Section 74A in the CGST Act: A common time limit for issuance of demand notices and orders, irrespective of fraud, suppression, or willful misstatement, will apply for the period pertaining to the Financial Year 2024-25 onwards.
9. Amendment in Section 107 of the CGST Act, 2017, and Section 20 of the IGST Act: Reduces the amount of pre-deposit required to be paid for filing an appeal under GST.
10. Amendment in Section 112 of the CGST Act, 2017:

    Allows a 3-month period for filing appeals before the GST Appellate Tribunal (GSTAT) to start from a date to be notified by the Government, effective from 01.08.2024. Reduces the amount of pre-deposit required to be paid for filing GSTAT appeals.

11. Amendment in Section 122 of the CGST Act: Relates to penalty provisions on E-commerce operators.
12. Insertion of Section 128A: Waives interest and penalty for demand notices issued under Section 73 if full tax is paid by 31.03.2025.
13. Amendment in Section 140 of the CGST Act: Allows transitional credit for service invoices received by the IGST before the appointed date, with retrospective effect from 01.07.2017.
14. Amendment in Section 171 of the CGST Act: Introduces a sunset clause for Anti-Profiteering measures and aligns these cases to the GSTAT (GST Tribunal).