Key highlights from the 53rd meeting of the GST Council
During the 53rd GST Council meeting on June 22, 2024, Finance Minister Nirmala Sitharaman introduced a number of important measures. The session, presided over by Sitharaman and attended by state finance ministers, primarily addressed tax amendments, integration of Aadhaar biometrics, and exemptions in railway services. The following are the main points to remember:
image for illustrative purpose
1) Aadhaar-based biometric authentication
Biometric-based Aadhaar authentication will be implemented nationwide. Finance Minister Nirmala Sitharaman announced that this measure will assist us in countering fraudulent claims for input tax credits that are made using fake invoices.
2) GST rate on milk cans
A standardised GST rate of 12% was declared for all milk cans, irrespective of their composition, be it steel, iron, or aluminium. This measure is anticipated to establish a uniform tax treatment for these products.
3) Petrol and diesel under GST
The central government restated its intention to include petrol and diesel in the GST system, subject to agreement among states on the appropriate tax rate. This action is perceived as a measure to achieve consistent fuel taxation throughout the nation.
4) Indian Railways services
The council approved a Goods and Services Tax (GST) exemption for platform tickets to alleviate passengers' financial strain. This decision is part of a wider initiative to enhance the affordability of railway services.
5) Reduction in GST for carton boxes
The GST rate on different categories of carton boxes has decreased from 18% to 12%. This modification will benefit both producers and customers by reducing the overall expense of these indispensable packaging materials.
6) Exemption for hostel accommodation
Hostel accommodation services provided by establishments outside educational institutions were granted a GST exemption of up to ₹20,000 per person per month. This exemption enhances the affordability of hostel accommodation for non-students.
7) Central support and conditional loans to states
Ms Sitharaman highlighted the Union Government's dedication to supporting states by ensuring prompt tax distribution, providing Finance Commission grants, and settling GST compensation, emphasising the 'Scheme for Special Assistance to States for Capital Investment'.
8) Extension of GSTR 4 filing deadline for small taxpayers
To assist small taxpayers, the Council has proposed an extension of the deadline for providing details and filing returns in the form GSTR 4 from April 30th to June 30th. The minister stated that this policy will be applicable for returns starting in the Financial Year 2024–25.
9) Waiver of interest and penalties for non-fraudulent cases
According to Finance Minister Nirmala Sitharaman, the GST Council has recommended the waiver of interest and penalties for demand notices issued under Section 73 of the GST Act. This waiver applies to cases that do not include fraud, suppression, or misstatements.
10) New monetary limits for filing appeals
The GST Council has proposed establishing specific monetary limits for the department to file appeals in different courts. These limits are ₹20 lakh for the GST Appellate Tribunal, ₹1 crore for the High Court, and ₹2 crore for the Supreme Court.
