Amendments to the Central Goods and Services Tax Act Enhance Tax Compliance

Ahmedabad: The Central Government has introduced amendments to the Central Goods and Services Tax Act, 2017, as part of the Finance (No. 2) Act, 2024, aimed at enhancing tax compliance and easing the burden on taxpayers. In alignment with these changes, the Gujarat government has issued an ordinance to amend the state GST Act, extending similar relaxations in GST interest and penalties to taxpayers in Gujarat.

In a press release, the Commissionerate of State Tax stated, “With the objective of ensuring greater tax compliance and easing the burden on taxpayers, the Central Government has amended the Central Goods and Services Tax Act, 2017, through the Finance (No. 2) Act, 2024, which contains various relaxations. Accordingly, the Government of Gujarat has promulgated an Ordinance to amend the Gujarat GST Act to extend these relaxations to taxpayers of Gujarat.”

Notifications detailing the manner and procedure to avail of these relaxations, including the GST Amnesty scheme and availment of Input Tax Credit (ITC) under sections 16(5) and 16(6), have also been issued.

As per the amended provisions and notifications, cases falling under section 73 of the GST Act for the financial years 2017-18, 2018-19, and 2019-20 are eligible for interest and/or penalty waivers. Eligible taxpayers can apply online for these benefits from November 1, 2024, to March 31, 2025.

Moreover, taxpayers are eligible to avail ITC under sections 16(5) and 16(6) for the financial years 2017-18, 2018-19, 2019-20, and 2020-21. To benefit from these provisions, eligible taxpayers must apply online for rectification. The release noted that those eligible to avail these relaxations are encouraged to submit their applications promptly.