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Date: December 22, 2018
Subject: GST Council Gives In-Principle Approval for Key Amendments in GST Law
Description:

The GST Council, in its 31st meeting held on 22 December 2018 in New Delhi, granted in-principle approval for important amendments to the GST Acts aimed at improving dispute resolution and providing relief to taxpayers. One of the key decisions was the approval for creation of a Centralised Appellate Authority for Advance Ruling (AAAR), which would address situations where conflicting rulings are issued by Appellate Authorities of different States on the same issue. This move was intended to bring uniformity and certainty in the interpretation of GST law across the country, thereby reducing litigation and ambiguity for businesses operating in multiple States. The Council also approved an amendment to section 50 of the CGST Act to rationalise the levy of interest on delayed payment of tax. Under the proposed change, interest would be charged only on the net tax liability payable in cash, after adjusting admissible input tax credit, instead of on the gross tax liability. This recommendation was aimed at addressing long-standing concerns of taxpayers regarding the excessive interest burden and aligning the law with the principle that interest should apply only on the actual cash outflow. The Council clarified that these decisions would be implemented only after the necessary amendments are formally carried out in the GST Acts through the legislative process.

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