SME Digital World

Tag: GST

GST Relief: Exemptions for Hostel Rents and Railway Services

GST Relief: Exemptions for Hostel Rents and Railway Services

The GST Council, in its 53rd meeting, announced several relief measures aimed at benefiting the middle class. Among these is an exemption from GST for rents up to ₹20,000 per month for accommodations outside college campuses. This applies to students and working professionals for stays up to 90 days, a reduction from the previous 12% GST rate on such accommodations.
Key Exemptions and Reductions
Union Finance Minister Nirmala Sitharaman highlighted that the council also exempted services like platform tickets, waiting room access, and cloakroom facilities at railway stations from GST. Furthermore, the council reduced GST on cartons to support apple farmers in Himachal Pradesh and Jammu and Kashmir, and set a 12% GST rate for all milk cans and solar cookers.
Addressing MSME and Industry Needs
The council recommended waiving interest and penalties for demand notices issued under Section 73 of the GST Act for cases not involving fraud, suppression, or misstatements. This waiver applies to notices from fiscal years 2017-18, 2018-19, and 2019-20.
Pending Issues and Future Considerations
Contentious issues like GST on fuel products, online gaming, and insurance premium rate rationalization were not discussed in this meeting. Finance Minister Sitharaman mentioned that the inclusion of petrol and diesel under GST depends on state decisions, despite the central government’s intention to include them.
Regarding the demand for GST exemption on fertilizers, Revenue Secretary Sanjay Malhotra stated that this issue has been referred to the Group of Ministers (GoM) due to its significance. Additionally, the council deferred the discussion on co-insurance premiums to the next meeting.
Industry Response and Additional Measures
Saurabh Agarwal, Tax Partner at EY India, commended the government’s measures, such as waiving interest and penalties for disputes up to FY 2019-20, extending ITC claim timelines for FY 2020-21, and reducing pre-deposit requirements for appeals. He suggested that streamlining the GST rate structure and exploring an ‘invoice locking’ facility within the GSTN system would further reduce litigation.
Support for Railways and Appeal Process
The council recommended exempting various services provided by Indian Railways to the public, such as platform tickets and waiting room facilities. This exemption will be regularized from October 20, 2023, to the date of the exemption notification.
To ease cash flow and working capital constraints for taxpayers, the council also proposed reducing pre-deposit amounts for filing appeals. The maximum pre-deposit for appeals with the appellate authority has been reduced to ₹20 crores for both CGST and SGST, down from ₹25 crores. For appeals with the Appellate Tribunal, the pre-deposit has been reduced to 10% with a maximum of ₹20 crores for both CGST and SGST, down from 20% with a maximum of ₹50 crores.

June 24, 2024
“MSME Delayed Payments: Updated Online Procedure for Filing Applications Against Defaulting Buyers”

MSME Delayed Payments: Updated Online Procedure for Filing Applications Against Defaulting Buyers

In response to delayed payments from buyers, MSMEs in India often encounter significant challenges. According to the government’s delayed payment monitoring portal, MSME Samadhaan, since October 2017, approximately 1.89 lakh applications involving Rs 43,160 crore have been filed by MSMEs. However, only 36,074 cases totaling Rs 6,235 crore have been resolved by facilitation councils.
For those seeking to file an application online against a buyer who has not settled dues within 45 days of invoice generation, follow these step-by-step instructions:
1. Visit the delayed payment filing and monitoring portal by the MSME ministry at samadhaan.msme.gov.in.
2. Click on the ‘Case Filing for Entrepreneur/MSE Units’ tab.
3. Choose the type of MSME registration — Udyog Aadhaar Number or Udyam Registration Number.
4. Enter the registration number, mobile number (as per the registration certificate), and verification code.
5. Click on ‘Validate Udyog Aadhaar’ or ‘Validate Udyam Registration’ based on your registration type.
6. Enter the OTP sent to the registered mobile number or email address for verification.
7. Access the ‘Application List’ page and click on ‘Application Entry’ located at the top right corner.
8. Input the date of the pending invoice under ‘The date of invoice in dispute’ and click ‘Submit.’
9. Your details will be pre-filled under ‘Petitioner Details’; provide any additional required information.
10. Select the business location from where the dispute has arisen.
11. Opt to send the application to the facilitation council of the state where your corporate office is located (‘Yes’).
12. Enter your office PAN and NIC code of the product sold.
13. Confirm the declaration at the end of the form.
14. Provide buyer or respondent details, including the GST number, and acknowledge the consent statement.
15. Specify the amount owed by the buyer.
16. Enter work order and invoice specifics and upload necessary documents.
17. Validate the information submitted, enter the verification code, and click ‘Final Submit.’
Both you and the buyer will receive notifications upon successful submission of the complaint.

May 14, 2024
Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

Increasing Issuance of GST Demand Notices Driving Growth in GST Collections

The surge in GST collections is partly attributed to the rising number of GST demand notices being issued to companies, prompting many to express their intention to appeal against these orders.
Abhishek Jain, Partner and National Head of Indirect Tax at KPMG India noted, “The sustained growth in GST collections, with the latest figures marking the highest collection ever, reflects the strength of the domestic economy. Notably, the growth from domestic transactions at 13.4 percent outpaces that from imports at 8.3 percent. Another contributing factor to this growth could be linked to the deadline for GST audits and the consequent issuance of notices during this period.”
Several companies have reported receiving GST demand notices from authorities, with many indicating their intent to challenge these orders.
For instance, Apollo Tyres disclosed receipt of an order from the Sales Tax Officer, Delhi, under the GST Act demanding GST payment and imposing a penalty of Rs 13.94 lakh. The dispute concerns input tax credit (ITC) utilization and other matters, according to the company. Apollo Tyres stated, “The company intends to appeal before the Appellate Authority in due course. The impact of this matter on the company’s financials, operations, or other activities is not material.”
Similarly, Crompton Greaves Consumer Electricals revealed receipt of an order from state tax authorities in Mumbai for the period from April 2018 to March 2019, imposing a demand of Rs 22.49 crore.
“Considering the merits of the case, prevailing laws, and advice from consultants, the company plans to appeal against this order before the Commissioner (Appeals) and anticipates favorable outcomes from the appellate authorities,” the company stated.

May 3, 2024