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New Key Changes in GST: Rate Reduction on LPG, Deadline Extensions & New Procedures

Embark on a journey through the dynamic realm of GST! Stay ahead in the ever-evolving landscape by unraveling the latest updates effective January 2024. Delve into key changes like the rate reduction on LPG, extended filing deadlines, amendments in CGST rules, rescinded notifications, and a novel special procedure for manufacturers. As businesses and individuals, it's crucial to grasp these nuances for seamless compliance and to harness potential benefits. Join us in this exploration as we decode the intricacies of these recent GST updates, providing you with insights to navigate the evolving tax terrain.

What is GST

GST stands for Goods and Services Tax. It's a consumption tax levied on goods and services to replace multiple indirect taxes, streamlining the tax system. Businesses collect and remit GST, and it's ultimately borne by the final consumer.

New Changes in GST

1. GST Rate Reduction on LPG (Non-Automotive

One of the significant updates in the GST landscape is the rate reduction on LPG (for non-automotive purposes). According to Notification No. 01/2024-Central Tax (Rate) dated 3 January 2024, the GST rate on LPG conforming to standard IS 4576 and classifiable under HSN 2711 19 10 has been reduced to 5%. Previously, it was levied at a higher rate.

The reduced GST rate of 5% applies to LPG supplied to non-domestic exempted category customers by Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, or Bharat Petroleum Corporation Limited. It also applies to LPG supplied to household domestic consumers.

It is important to note that this rate reduction is applicable only to LPG used for non-automotive purposes. The rate for LPG used for automotive purposes remains unchanged.

2. Extension in Filing Deadlines for GSTR-3B

To provide relief and flexibility to taxpayers, the due date for filing GSTR-3B for the month of November 2023 has been extended. As per Notification No. 01/2024-Central Tax dated 5 January 2024, the new deadline for filing GSTR-3B is 10th January 2024. This extension applies specifically to registered persons whose principal place of business is in the districts of Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi, and Virudhunagar in the State of Tamil Nadu.

This extension allows businesses in the specified districts to have additional time to fulfill their compliance obligations and submit the required GSTR-3B within the revised deadline.

3. Amendment in CGST Rules

The CGST rules have been amended to introduce certain changes related to the filing of annual returns and reconciliation statements. As per Notification No. 02/2024-Central Tax dated 5 January 2024, new rules have been inserted to streamline the process for the financial year 2022-2023.

Under the amended rules, the deadline for furnishing the annual return in Form GSTR-9 and the self-certified reconciliation statement in Form GSTR-9C has been extended. Instead of the previous deadline of 31st December 2023, these forms must now be filed on or before 10th January 2024. This extension applies to registered persons whose principal place of business is in the districts of Chennai, Tiruvallur, Chengalpattu, Kancheepuram, Tirunelveli, Tenkasi, Kanyakumari, Thoothukudi, and Virudhunagar in the State of Tamil Nadu.

These amendments provide businesses with additional time to comply with the annual return and reconciliation statement requirements, ensuring a smoother and more efficient filing process.

4. Rescinding of Notification No. 30/2023-Central Tax

Notification No. 30/2023-Central Tax, which provided for a special procedure to be followed by registered persons engaged in manufacturing certain goods such as Pan Masala and Tobacco, has been rescinded. This rescinding comes into effect from 1st January 2024, as per Notification No. 03/2024-Central Tax dated 5 January 2024.

The rescinding of this notification simplifies the reporting process for registered persons engaged in the manufacturing of specified goods. It removes the additional records maintenance requirements and procedures specified under the previous notification, streamlining compliance for manufacturers.

5. New Special Procedure for Manufacturers of Specified Goods

A new special procedure has been introduced by the Central Government for registered persons engaged in the manufacturing of specified goods such as Pan Masala and Tobacco. This procedure aims to facilitate compliance and reporting for manufacturers and comes into effect from 1st April 2024, as per Notification No. 04/2024-Central Tax dated 5 January 2024.

Under this special procedure, registered persons involved in manufacturing specified goods must provide details of packing machines used for filling and packaging in FORM GST SRM-I on the common portal. These details should be furnished within 30 days of the notification coming into effect, or within 15 days for those obtaining registration post-notification issuance.

Any changes in the declared capacity of machines must be updated within 24 hours on the common portal. A unique number will be generated for each machine upon submission of details.

Registered persons are also required to submit a special monthly statement in FORM GST SRM-II electronically on the common portal by the tenth day of the month succeeding the reporting month. Additionally, a certificate from a Chartered Engineer must be uploaded in FORM GST SRM-III for the declared machines.

This new special procedure aims to simplify compliance and reporting for manufacturers of specified goods, promoting ease of doing business and fostering a more conducive environment for manufacturers.

Speculation on potential further changes or developments in GST

With the recent key changes in GST, including the rate reduction on LPG, deadline extensions, and new procedures, there is widespread speculation about potential further developments in the GST framework. Industry experts anticipate that the government may consider expanding the scope of rate reductions to other essential commodities to alleviate the burden on consumers. Additionally, there is a growing expectation for more flexibility in compliance deadlines and simplification of procedures to enhance ease of doing business. Moreover, there is anticipation regarding the incorporation of technological advancements to streamline the GST process and reduce administrative complexities. Overall, the recent changes have sparked speculation about a more dynamic and responsive GST framework to adapt to evolving economic and business landscapes.

End of Line

Summarizing the key takeaways from the recent GST changes, including reduced LPG rates, extended filing deadlines, CGST rule amendments, notification rescission, and a new procedure for manufacturers. It's imperative for businesses to stay informed and adapt to this evolving landscape. Stay proactive, navigate the dynamic GST environment, and empower your business to thrive! To ensure seamless adaptation and maximize benefits, stay informed about these updates. Keep abreast of regulatory nuances, and embrace these changes for sustained growth and success in the ever-evolving GST ecosystem. Stay informed, stay ahead!

Ready to adapt to these changes? Contact us for expert GST Registration and GST Return services and ensure seamless compliance with the latest updates!

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

GST rates are commonly 5%, 12%, 18%, and 28%, with some items exempted or taxed at 0%.
 

GST returns need to be filed monthly, quarterly, or annually, depending on the type of taxpayer.
 

Businesses can claim input tax credit by matching eligible input tax with their output tax liability.

Errors in GST returns can be rectified through the filing of a revised return within the prescribed time limit.

GST streamlines the taxation system by replacing multiple indirect taxes, promoting a unified tax structure.

Yes, car hire charges are subject to Goods and Services Tax (GST) in India.

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