53rd GST Council Meeting: Council announces sweeping reforms to enhance tax compliance and reduce litigation

In a pivotal session held on Saturday, June 22, 2024, the 53rd GST Council meeting charted several crucial reforms aimed at streamlining tax compliance and minimising litigation across the country.

One of the standout announcements was the waiver of penalties and interest for the fiscal years 2017-18, 2018-19, and 2019-20, where no fraud was detected. This move, while relieving taxpayers of additional financial burdens, ensures that the principal tax amounts are duly settled.

Furthermore, steps were taken to reduce litigation through structured initiatives. Notably, the GST Appellate Tribunals (GSTAT) will now handle cases involving amounts up to Rs 20 lakh, while matters for High Courts and the Supreme Court will have higher thresholds of Rs 1 crore and Rs 2 crore, respectively. These measures are anticipated to expedite judicial processes and provide relief to smaller taxpayers.

In a bid to facilitate easier tax compliance for smaller entities, the GST return filing deadline for GSTR-4 has been extended to June 30.

Additionally, modifications have been introduced in GSTR-1, with the introduction of a new form named GSTR-1A, aimed at simplifying the reporting process.

The Council also announced plans to implement a nationwide biometric Aadhaar-based registration system following successful pilot projects. This initiative aims to enhance registration efficiency and curb fraudulent practices in tax filings.

Looking ahead, the Council hinted at convening its next meeting around mid-August to deliberate on further reforms and strategies. Before this decision, consultations were held with state finance ministers as part of pre-budget deliberations.