The GST Council on Saturday, June 22, paved the way for the industry to

seek relief from retrospective demands. Due to a lack of clarity, the industry
has been paying taxes at a rate different from what the government later
prescribed in clear terms. The GST Council approved amendments to the
Goods and Services Tax (GST) law, including a new section 11A. These
amendments are likely to be introduced in the upcoming monsoon session
of Parliament, sources said.

Following Parliament's approval, the section will be implemented through a

notification. This move will enable the council to consider using the rule
whenever and wherever it deems appropriate," they added.

What is Section 11A?

Simply put, this section allows sectors that have paid GST at a lower rate
than what was later applied by GST authorities to seek relief from
retrospective actions or demands. It ensures that the government cannot
levy higher GST rates when a lower rate was paid due to common trade
practices across the industry, not just isolated cases.

Furthermore, this section provides relief from retrospective actions or

demands for lower tax payments made by entire sectors. It empowers the
GST Council to consider refraining from raising retrospective tax demands
where industries paid a lower GST rate due to unclear or unspecified rates.

In addition, the amended GST law will prevent GST refunds or cess in
cases where higher GST payments have already been made. This
measure aims to prevent demands against companies for past compliance
based on prevalent trade practices and tax uncertainties.

Sources say that “After Parliament nod and notification, this Section 11A
can be used after sector-based discussion in GST Council as and when
required.

mlined and predictable tax environment for these industries."

Pratik Jain, Partner, PwC is hopeful that the retrospective exemption may
give relief to online gaming as well.

“I think the government is perhaps contemplating using that provision to

provide relief to certain sectors, perhaps online gaming as well. What has
happened in this Council meeting is that they have now approved the
enabling provision which allows the government to provide retrospective
exemption. That kind of provision was there in a pre-GST era in excise
laws, etc. That was not in the GST law. Now that provision will be there
once the amendment is passed, which is likely to happen in the budget
session.”

MS Mani, Partner-GST, Deloitte India, said, “There is a genuine desire now

on the part of the government to recognise trade practices and business
practices which may not be aligned with GST. And trade practices,
business practices are unique to each industry. It's too much to expect
businesses—all businesses across a sector to change their trade practices
just because the GST law cannot be interpreted in a straitjacketed manner.
Having a provision which says that we henceforth will recognise trade
practices, business practices, provided it is uniform, is to me a great step
that they have taken this time.”

On online gaming, Mani added, “We will obviously have to wait and watch
in terms of what exactly is a notification and how they interpret this for
them.”
First Published: Jun 24, 2024 5:42 PM IST

Check out our in-depth Market Coverage, Business News & get real-time Stock
Market Updates on CNBC-TV18. Also, Watch our channels CNBC-
TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Follow us on:
Tags

goods and services tax (GST)GST council

Delhi: Unlock Your New Income with Amazon CFD [Get

Info]Great opportunity CPX|
Sponsored

Learn More
Why is the EV sector on investors’ radar?Find professionally created stock
portfolios of EV companies. Try smallcase now.smallcase|

Sponsored

Try Now

Study in UK Without IELTS/TOEFL - Budget Friendly!Get FREE end-to-end

counseling with Leverage Edu and plan your study abroad journey todayLeverage Edu|

Sponsored

Apply Now

See How a $249 Amazon Investment Can Benefit You (Apply

Today)CPX|
Sponsored

Restoring The Indian Rhino To Manas, IndiaOur Better World|

Sponsored

Learn More

Book Your Home by Sobha International Developer at Dwarka

ExpresswaySobha LTD New Launch at Sector 106 Gurgaon, 3 Sky-High Buildings, Site
Area 5.51 Acres, Total 293 units,Sobha Altus Gurgaon|

Sponsored

Learn More

Be part of something bigger! Millions have invested in

Amazon CFD , and you can too.CPX|
Sponsored

Kerala Assembly passes resolution seeking to change state's name -

CNBC TV18CNBC TV18
GST Council Meeting: 53वी ं जीएसटी काउं िसल की बैठक म कई बड़े फैसले ,
जािनए िडटे ल - CNBC आवाज़CNBC TV18

Delhi: Discover Extra Income with Amazon CFDGreat opportunity CPX|

Sponsored

Learn More

See A Wild Monkey, Clap. Here’s WhyOur Better World|

Sponsored

Learn More

Premium Flat By Sobha LTD Starting From 6.66 Cr.*Sobha New Launch
Gurgaon, Total 293 units, clubhouse over 46080 Sq.Ft., Possession in 2028,Sobha Altus
Gurgaon|

Sponsored

Learn More

MOST POPULAR

IRFC shares may see 33% upside, but a chartist wants it to cross
these levels first - CNBC TV18CNBC TV18

MOST POPULAR

Happiest Minds, Borosil, Swan Energy, Amara Raja and more: Stocks
to watch on June 25 - CNBC TV18CNBC TV18

Study in UK for < ₹15 Lakhs, No IELTS/TOEFL Required!Get

FREE end-to-end counseling with Leverage Edu and plan your study abroad journey
todayLeverage Edu|

Sponsored

Apply Now

CNBC-TV18 Select






TV ShowsDigital Exclusives
Closing Bell
Aug 31

Markets Today
Aug 29

India Business Hour

Aug 29

Your Stocks
Jan 30
 View All →

Most Read


Explained: How the GST Council aims to address retrospective tax demands via Section

11A

Jun 24, 2024 5:43 PM 4 Min Read

India's Current Account Surplus: A triumph and a challenge

Jun 24, 2024 11:32 PM 3 Min Read

₹10,000 invested in these equity mutual funds has grown up to 43 times in 20 years

Jun 14, 2024 11:28 AM 2 Min Read


 Income Tax Return — how salaried taxpayers can file it online for FY23-24

Jun 14, 2024 6:42 PM 4 Min Read

Share Market Live

View All→

Top Gainers Top Losers

NiftySensex

Company Price Chng %Chng

UltraTechCement 10,943.00 157.00 1.46

HDFC Bank 1,696.40 24.00 1.44

Axis Bank 1,245.65 17.55 1.43

SBI 840.85 8.15 0.98

Divis Labs 4,559.20 39.65 0.88

CurrencyCommodities

Currency Price Change %Change

Dollar-Rupee 83.45 -0.00 -0.01

Euro-Rupee 89.58 0.02 0.03

Pound-Rupee 105.88 0.01 0.01

Rupee-100 Yen 0.52 0.00 0.09

 Global Indices
View All→

Name Value %Chng

DAXJun 25 18325.58 0.00

Hang SengJun 25 18141.51 0.63

Taiwan WeightedJun 25 22835.40 0.10

NasdaqJun 25 17496.82 -1.10


o BUSINESS
o INDIA
Explained: How healthy are your health drinks?Read Explainer

o EDUCATION CAREERS
o PERSONAL FINANCE
Medical education costs may double in the next decade—are you
prepared?Read Explainer

o INDIA
2024 Lok Sabha elections: Unable to find your voter ID? Here are
alternative docs to cast voteRead Explainer

o PERSONAL FINANCE
No age restriction for health insurance now — what this means for
premiums and waiting periodsRead Explainer

o BUSINESS
o INDIA
Explained: How healthy are your health drinks?Read Explainer

o EDUCATION CAREERS
o PERSONAL FINANCE
Medical education costs may double in the next decade—are you
prepared?Read Explainer

o INDIA
2024 Lok Sabha elections: Unable to find your voter ID? Here are
alternative docs to cast voteRead Explainer

o PERSONAL FINANCE
No age restriction for health insurance now — what this means for
premiums and waiting periodsRead Explainer

1234

Quiz

BUSINESS

How Well Do You Know The History Of The Union Budget? Find Out!

Start Quiz NowRelated News

Total 5 Questions

Poll
Do you expect the Govt to tweak Income Tax Slabs in the upcoming Budget?

YesNoCan't SayWon't Say

Upcoming Events
View More

08JUL
SC to hear pleas on NEET exam
LEGAL

18JUL
Infosys Q1 Earnings
EARNINGS

10SEPT
Supreme Court to hear plea against fixation of hospital rates on Sept 10
LEGAL
 Sponsored Links

You May Like

Invest in M3M Mansion at 4.67Cr* & Get Discounts up to 40L*M3M Mansion, Gurugram
Book Now

Doctorate with U.S. campus immersionsGolden Gate University

Learn More

Pay for a few years, get covered for a lifetimeICICI Pru Life Insurance Plan

Introduction to Cloud Computing and DevOpsIntellipaat

Sign Up

by Taboola

News
 Business
 Markets
 Stocks
 Economy
 Personal Finance
 Sports
 India
 Education
 Politics
 Technology
 Auto
 Startup
Live TV
 Live TV
 CNBC Awaaz LIVE TV
 CNBC Bajar LIVE TV
Market
 Market Live
 Nifty50
 Sensex
 Global Indices
 Dax
 Hang Seng
 Taiwan Weighted
 Nasdaq
Popular Categories
 Companies
 Stocks
 World
 Travel
 Lifestyle
 Education & Careers
 Views
 Webstories
 Photos
 Entertainment
 Environment
 Healthcare
 Podcast
Trending Now
 #Budget2024
 #StockMarketLive
 #TradeSetUPFor25June
 #AllcargoGatiQIP
 #BandhanBank
 #IRFCShare
 #RohitSharmaT20Record
 #BlockDeal
 #NvidiaShares
 #StockstoWatch
 About Us
 T&C
 Contact
 Privacy Policy
 Cookie Policy
 Advertise with Us
 Terms of Use
 Sitemap
 Rss
Let's Connect with CNBCTV 18





Network 18 Group :
 Moneycontrol
 TopperLearning
 Overdrive
 News18
 Cricketnext
 Forbes India
 Firstpost

©TV18 Broadcast Limited. All rights reserved.

Listen to the latest songs,only on JioSaavn.com