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Gist of Latest CBIC notifications issued dated 08/10/2024

Gist of CBIC notifications issued dated 08.10.2024

Notification No. 21/2024–Central Tax

 

This notification details the procedure and conditions for waiving interest or penalties regarding tax demands under Section 73 of the CGST Act for the financial years 2017 to 2020, as per Section 128A.

 

Notification No. 22/2024–Central Tax

 

The CBIC specifies the mechanism for the implementation of newly inserted subsections (5) and (6) in Section 16 of the CGST Act.

To clarify the conditions under which input tax credit (ITC) can be availed- against whom any order under section 73 or section 74 or section 107 or section 108 of the said Act has been issued confirming demand for wrong availment of input tax credit, on account of contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said order has not been filed.

 

Notification No. 23/2024–Central Tax

 

This notification waives the late fee for registered persons who delayed filing FORM GSTR-7 from June 2021 onwards, as per the decisions from the 53rd GST Council meeting.

 

GST Rate Changes

Notification No. 05/2024-Central Tax (Rate) wef 10.10.2024

 

Cancer Drugs: GST rates on specific cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, have been reduced from 12% to 5%.

Namkeens and Savoury Food Products

The GST rate on these products has been reduced from 18% to 12%.

Car Seats

The GST rate on car seats has increased from 18% to 28%, aligning it with motorcycle seat rates.

 

Notification No. 06/2024-Central Tax (Rate) wef 10.10.2024

 

This notification introduces a reverse charge mechanism for the supply of metal scrap from an unregistered person to a registered person.

1. From tomorrow (10.10.2024), if a registered trader buys Metal Scrap from unregistered persons, the trade and transportation will be legally possible only after declaring 18% tax and taking self invoice under section 31 (3) (f). The tax on the said goods is 18% reverse charge and has to be paid by the registered trader himself through his GSTR 3B return.

 

Notification No. 25/2024-Central Tax

TDS @ 2% any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person.

Notification No. 07/2024-Central Tax (Rate) wef 10.10.2024

 

GST at a rate of 5% is now applicable for the transportation of passengers by helicopters on a seat-share basis, regularizing GST for previous periods on an ‘as is where is’ basis.

 

Notification No. 08/2024-Central Tax (Rate) wef 10.10.2024

 

Exemption from GST is granted for ancillary services related to electricity supply, as well as for research and development services provided by government entities, research associations, universities, and similar institutions.

Exemptions also apply to affiliation services provided to government schools and certain skill development services.

 

Notification No. 09/2024-Central Tax (Rate) wef 10.10.2024

 

This notification states that the renting of commercial property by an unregistered person to a registered person will be covered under the reverse charge mechanism.

From tomorrow (10.10.2024), on rent of commercial premises from an unregistered person/organization, the registered trader shall declare 18% tax on the rent and pay the rent by taking self invoice as per section 31 (3) (f). The tax on the said rent is 18% reverse charge and has to be paid by the registered trader himself through his GSTR 3B return. Also, even if the commercial building is used without rent as per the consent form from related person, there would be Gst with 18% rcm.

 GST liability on rent of premises to unregistered person/firm will be from 10th October 2024 and this tax should be paid when October return is filed in November. 

Another thing to remember in this regard is that even if the registration is in the composition scheme, when the reverse charge comes, the said composition registration trader has to pay the reverse charge tax at the same rate of 18%.

 

  

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