The meeting was held in New Delhi on June 22nd, 2024, chaired by Finance Minister Nirmala Sitharaman.
Focus: Revisions in the CGST Act for a smoother and more standardized process.
Changes:
Common Time Limit for Demand Notices/Orders: A uniform time limit will be implemented for issuing demand notices and orders irrespective of fraud, suppression, etc., involved. This simplifies the process for businesses.
Extended Time Limit for Reduced Penalty: The time for availing a reduced penalty by paying the demanded tax and interest has increased from 30 days to 60 days. This provides some relief to businesses.
Show Cause Notice: The issuing authority must now provide a show-cause notice 3 months before the time limit expires. This ensures transparency and allows businesses time to respond.
Maximum Time Limit for Payment Order: The maximum time limit for an order to be issued for tax payment remains 3 years from the annual return filing deadline for the relevant year.