GST Council introduces biometric authentication in major compliance overhaul

Finance Minister Nirmala Sitharaman announced several significant measures following the 53rd GST Council meeting, including the introduction of biometric-based Aadhaar authentication to combat fraudulent invoicing.

Top Announcements from the GST Council Meeting:

1.    Biometric Aadhaar Authentication: The finance minister announced the nationwide rollout of biometric-based Aadhaar authentication. This measure aims to curb fake invoices and fraudulent input tax credit claims.
2.    Extended Deadline for Small Taxpayers: The GST Council has extended the deadline for small taxpayers to file their GSTR-4 returns from April 30 to June 30, starting from the financial year 2024-25.
3.    Waiver of Interest and Penalties: The council recommended waiving interest and penalties for demand notices issued under Section 73 of the GST Act, particularly for cases that do not involve fraud, suppression, or misstatements.
4.    GST Exemption for Indian Railways Services: Services provided by Indian Railways, including platform tickets, will be exempted from GST.
5.    Trade Facilitation and Compliance Relief: Sitharaman emphasized that the council's decisions focused on easing the compliance burden and providing relief to taxpayers, particularly benefiting traders, MSMEs, and small taxpayers.
6.    Interest and Penalties Waiver for Previous Fiscal Years: The council recommended waiving interest and penalties for demand notices issued under Section 73 for the fiscal years 2017-18, 2018-19, and 2019-20.
7.    Retrospective Amendment for Input Tax Credit: The time limit for availing input tax credit for invoices or debit notes filed up to November 30, 2021, will be retrospectively extended from July 1, 2017.
8.    Monetary Limits for Filing Appeals: To reduce government litigation, the council set monetary limits for filing appeals: ₹20 lakh for the GST appellate tribunal, ₹1 crore for High Court, and ₹2 crore for the Supreme Court.
9.    Reduction in Pre-Deposit Amounts: The maximum pre-deposit amount for filing appeals before the appellate authority will be reduced from ₹25 crore CGST and ₹25 crore SGST to ₹20 crore CGST and ₹20 crore SGST.
10.    New Timeline for Filing Appeals: The period for filing appeals in the GST appellate tribunal will start from a date to be notified by the government, with the current deadline being August 5, 2024.