GST UPDATE

????Desk of CA. Praveen Sharma Series-548????

Summary of New Section 11A in the CGST Act 2017 (Finance Bill, 2024)

?Objective : To address and rectify issues arising from generally prevalent practices regarding the levy of central tax on supplies of goods and services, providing relief where necessary.

? Key Points:

? Prevalent Practice: Applies where there was, or is, a common practice affecting the levy (or non-levy) of central tax on certain supplies.

? Tax Liability: Covers cases where central tax was not levied at all or was levied at a higher rate than appropriate.

? Government Authority:

?The Government can issue a notification in the Official Gazette, based on GST Council recommendations.

?The notification can direct that central tax (or excess central tax) need not be paid for supplies affected by the prevalent practice.

? Taxpayer Relief: Ensures taxpayers who followed generally accepted practices that led to incorrect tax levy are not penalized.

?Effective Date:  The amendment is prospective, applying from the enactment date of the Finance Bill, 2024.

? Impact : Provides a mechanism for the government to offer relief and rectify tax issues arising from commonly followed practices without penalizing compliant taxpayers.

Link:https://www.linkedin.com/pulse/desk-ca-praveen-sharma-series-548-summary-new-section-ihxmc

CA. Praveen Sharma

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