June 22 – GST Council has decided to amend the GST law to clarify that Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption is not taxed under GST law. This will help the liquor manufacturers in bringing down their manufacturing cost and will boost the liquor industry, said CM Pramod Sawant who attended the 53rd GST Council meeting chaired by the Union Finance Minister today. This is Sawant’s first meeting after being nominated on the GST Council and also the first GST Council meeting of the newly elected Union govt.
🔸 Covid hit Small businesses to get relaxation in time limit for filing returns
GST Council has accepted the proposal for giving relaxation from applicability of time limit of Section 16(4) for all returns of years 2017-18 to 2020-21 if the returns are filed on or before 30/11/2021, informed CM Sawant. Small businessmen who had not filed their GST returns in time limit due to Covid Pandemic or other reasons of financial difficulties or technical issues were denied their input tax credit(ITC) claims because returns were filed late after time limit given u/s 16(4) of GST Law was over. Around 5 lakh taxpayers from Goa and rest of the country are expected to get respite due to the GST council decision. Taxpayers will not be required to pay denied ITC with interest, informed Sawant “Section 16(4) will be amended for allowing this ITC,” he added.
Sawant also supported the Amnesty of giving waiver of interest and penalty demanded in assessment orders u/s. 73 of GST Act in respect of initial three years 2017-18, 2018-19 and 2019-20 if only tax demanded is paid. This will also give relief to those businessmen who had not checked their dashboard on portal in time and did not know that notices were issued to them, said CM.
