GST Council relief likely on pre-deposit for disputes

By: Admin
June 20, 2024
Categories: GST Recent News
4 Min Read

In what could be a breather for the taxpayers, especially the industry, on the issues related to tax disputes, sources told CNBC-TV18 that the GST Council is likely to reduce the amount of pre-deposit to enter the appeals stage.

Sources said, “The GST Council is likely to rationalise the pre-deposit amount to be paid while entering the first and second stage of appeal.”

The proposal in front of the GST Council is to reduce the “quantum of pre-deposit for filing an appeal with the appellate authority at 10% of disputed tax or a maximum of ₹20 crores each in CGST and SGST and ₹40 crore for IGST”, the sources told CNBC-TV18.

Similarly, the “quantum of pre-deposit to be paid for filing appeals in the appellate tribunal should be reduced to 10% of disputed tax or max Rs. 20cr CGST & SGST and Rs 40 cr for IGST,” they said.

Experts say these new limits if cleared, would be a big relief as they would free up a lot of working capital as these are substantially low from the existing limits.

It remains to be seen what view the GST Council takes on June 22, when it meets next.

The GST Council is also likely to pave the way for a breather for the industry from retrospective demands, where due to lack of clarity, the industry had been paying taxes at a different rate, as against what the government prescribed in black and white later on.

Source from: https://www.cnbctv18.com/economy/gst-council-meeting-relief-likely-on-pre-deposit-for-disputes-19430559.htm