Finance Minister Nirmala Sitharaman announced that the next Goods and Services Tax (GST) Council meeting is tentatively scheduled for mid to late August.
GST Exemptions for Indian Railways and Other Services The GST Council has proposed exemptions for specific services offered by Indian Railways, benefiting the general public and intra-railway transactions. Services such as platform tickets, retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services are now exempt from GST.
Pending Agenda and Key Decisions
This upcoming session aims to address pending agenda items from today’s meeting. Today’s GST Council meeting featured several critical decisions aimed at easing compliance burdens and providing relief to taxpayers.
Trade Facilitation and Compliance Relief
Finance Minister Sitharaman stated, “Today’s GST Council meeting has taken a lot of decisions on trade facilitation, easing compliance burden, and relief to taxpayers in terms of compliance easing out.” Significant measures include waiving interest penalties on demand notices under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. This applies to cases not involving fraud, suppression, or misstatement. Taxpayers who pay the full tax amount by March 31, 2025, will benefit from this waiver.
Input Tax Credit Extension
The Council approved an extension for availing input tax credit (ITC) on any invoice or debit note. For returns filed up to November 30, 2021, the deadline for ITC claims for fiscal years 2017-18 to 2020-21 is now November 30, 2021.
Curbing Government Litigation
To reduce government litigation, the Council recommended monetary thresholds for filing appeals: Rs 20 lakh for the GST appellate tribunal, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court.
Support for Small Taxpayers
The Council extended the deadline for furnishing returns from April 30 to June 30 for the fiscal year 2024-25 and subsequent years, providing relief to small taxpayers.
Uniform GST Rates and Exemptions
- A uniform GST rate of 12 percent will apply to all types of sprinklers, including fire and water sprinklers.
- Accommodation services valued up to Rs 20,000 per person per month, provided for at least 90 days, will be exempt, benefiting hostels and similar accommodations.
- The Council recommended a uniform GST rate of 12 percent on all milk cans, regardless of material.
- A 12 percent GST rate was also recommended for all types of carton boxes and cases, benefiting apple growers in Himachal Pradesh and Jammu & Kashmir.
- Solar cookers will attract a uniform GST rate of 12 percent, supporting renewable energy initiatives.
Biometric-Based Aadhaar Authentication
The Council recommended a phased rollout of biometric-based Aadhaar authentication for GST registration applicants across India.
Petrol and Diesel Under GST
Finance Minister Sitharaman reiterated the central government’s intent to bring petrol and diesel under the GST framework. She emphasized that while the groundwork was laid during the initial GST implementation, the decision requires consensus among state governments.
53rd GST Council Meeting Highlights
The 53rd GST Council meeting, presided over by Union Finance Minister Nirmala Sitharaman, was held at Bharat Mandapam in New Delhi. The meeting saw participation from Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, alongside Finance Ministers from various States and Union Territories, and senior officials from both Union and State governments.
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