Latest Official GST Updates from the Indian Government

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Latest Official GST Updates from the Indian
Government

• www.aiatindia.com

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Introduction
The Indian government has made various changes to
the Goods and Services Tax (GST) regime. Goods
and Services Tax (GST) is a comprehensive
indirect tax system in India that was implemented
in July 2017 to replace other taxes such as VAT,
Excise Duty, and Service Tax. GST is charged on
the supply of goods and services, with the tax
rate varying according to the type of products
and services supplied. GST is a destination-based
tax, which means that the tax income is paid to
the state where the products or services are
consumed. The GST council, which consists of
representatives from the central and state
governments, makes decisions about the tax rate
and any modifications to the GST law.
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1.Tax Rate Adjustments for Used automobiles The
GST Council has raised the GST rate from 12 to
18 on the sale of all old and used vehicles,
including electric vehicles (EVs).
2.Consideration of GST Reduction on Online
Food Delivery Fees The GST Council is evaluating
a proposal to reduce the GST on food delivery
charges from e-commerce platforms, such as Zomato
and Swiggy, from 18 to 5. This adjustment is
intended to make food delivery services more
affordable for consumers.
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3.Exclusion of Aviation Fuel from GST Regime The
GST Council has rejected the proposal to include
aviation turbine fuel (ATF) under the GST regime.
Currently, state governments determine the
taxation of ATF, leading to varying tax rates
across states. 4.GST Collections Increase In
November 2024, India's GST collections rose by
8.5 year-on-year, totalling ?1.82 trillion. This
increase reflects economic growth and improved
compliance. 5.Tax Classification on Popcorn The
GST Council has introduced distinct GST rates for
popcorn 5 for non-branded salted popcorn, 12
for pre-packaged and branded popcorn, and 18 for
caramel popcorn due to added sugar. This decision
has sparked public and political debate over the
complexity of the tax system.
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GST Updates Released in December 2024
The 55th GST Council met on December 21, 2024, in
Jaisalmer, Rajasthan. The Union Finance and
Corporate Affairs Minister presided over the
meeting, which was attended by Union Minister of
State for Finance Shri Pankaj Chaudhary, Chief
Ministers of Haryana, Jammu and Kashmir,
Meghalaya, and Odisha, Deputy Chief Ministers of
Arunachal Pradesh, Bihar, Madhya Pradesh, and
Telangana, as well as Finance Ministers of States
and UTs (with legislature) and senior officers of
the Ministry of Finance and States/UTs.
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The government stressed that taxpayers could only
generate e-way bills for documents dated no
earlier than 180 days. An e-way bill's validity
can also be extended for up to 360 days after it
was generated. MFA/2FA will be necessary on NIC
portals to create e-invoices and e-way bills for
taxpayers with annual aggregate turnover (AATO)
more than ?20 Crores, spreading to all users in a
staggered manner from April 1, 2025. Logging in
requires a username, password, and an OTP (given
to a registered mobile phone or app). All
changes outlined above will take effect on
January 1, 2025.
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GSTN has issued advisory on Biometric-Based
Aadhaar Authentication and Document Verification
for GST Registration in several states. Rule 8
now covers biometric-based Aadhaar authentication
based on data analysis, risk parameters, and
document verification. After submitting the
application in Form GST REG-01, the applicant
will receive an email requesting either OTP-based
authentication or a GSK appointment for biometric
verification, along with the requisite documents
such as Aadhaar and PAN card. This seeks to
streamline and improve the registration procedure.
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The 55th GST Council meeting will take place on
December 21, 2024 in Jaisalmer, Rajasthan. The
council is anticipated to make recommendations
based on the Status Report given by the Group of
Ministers. The gathering is a must-see, with
topics ranging from merging tax slabs to
streamline the current GST framework to proposing
a new 35 tax rate.Furthermore, GST rates for
essential products such as packaged drinking
water and exercise notebooks are expected to
fall, but luxury goods such as high-end shoes and
watches would rise.
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• Additionally, GST rates for insurance premiums,
  textiles, educational products, and cosmetics may
  alter.
• An advisory was issued regarding entering receipt
  numbers for leased wagons in the E-Way Bill
  System.
• Effective January 1, 2025, E-Way Bill and
  E-Invoice systems will essential Multi-Factor
  Authentication (MFA).
• The deadline for filing GSTR-3B for October 2024
  has been enlarged for taxpayers in Murshidabad,
  West Bengal, per Central Tax Notification No.
  30/2024.
• An advisory was provided to correct
  inconsistencies between Table 8A and Table 8C
  numbers in the GSTR-9 annual return for FY
  2023-24.
• Advisory on essential sequential filing of GSTR-7
  under Notification No. 17/2024.
• Advice on entering RR No./eT-RRs and integrating
  E-Way Bills into the FOIS system.
• The GST collection data for November 2024 showed
  an income of ?1.82 lakh crore. Advisory issued
  on GST E-Invoice terminology and guidance.

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