Finance Minister Nirmala Sitharaman announced several significant measures during the 53rd GST Council meeting held on Saturday, June 22, 2024. Chaired by Sitharaman and attended by state finance ministers, the session focused on tax amendments, Aadhaar biometric integration, and exemptions in railway services. Here are the key takeaways:
Aadhaar-based Biometric Authentication
“There will be a nationwide rollout of biometric-based Aadhaar authentication to combat fraudulent input tax credit claims made through fake invoices,” announced Finance Minister Nirmala Sitharaman. This initiative aims to enhance tax compliance by curbing fraudulent practices.
GST Rate on Milk Cans
A uniform GST rate of 12% was announced for all milk cans, regardless of whether they are made of steel, iron, or aluminum. This measure aims to standardize the tax treatment of these products.
Petrol and Diesel under GST
The central government reiterated its intent to bring petrol and diesel under the GST regime, pending consensus among states on the applicable tax rate. This move is seen as a step towards uniform taxation of fuel across the country.
Indian Railways Services
The council granted a GST exemption on platform tickets to ease the financial burden on passengers. This decision is part of broader efforts to make railway services more affordable.
Reduction in GST for Carton Boxes
The GST rate on various types of carton boxes was reduced from 18% to 12%. This change aims to benefit both manufacturers and consumers by lowering the overall cost of these essential packaging materials.
Exemption for Hostel Accommodation
Services related to hostel accommodation outside educational institutions were exempted from GST up to ₹20,000 per person each month. This exemption is designed to make hostel accommodation more affordable for non-student residents.
Central Support and Conditional Loans to States
Finance Minister Sitharaman emphasized the Union Government’s commitment to aiding states through timely tax devolution, Finance Commission grants, and GST compensation settlements. She highlighted the ‘Scheme for Special Assistance to States for Capital Investment’, noting that while most loans are unrestricted, a portion remains conditional on states implementing citizen-centric reforms and specific capital projects across sectors. Sitharaman encouraged states to leverage these loans by fulfilling the stipulated criteria.
Extension of GSTR 4 Filing Deadline for Small Taxpayers
To help small taxpayers, the Council recommended extending the deadline to furnish details and returns in the form GSTR 4 from April 30 to June 30, applicable for returns from the Financial Year 2024-25 onwards.
Waiver of Interest and Penalties for Non-Fraudulent Cases
The GST Council has recommended waiving interest and penalties for demand notices issued under Section 73 of the GST Act. This waiver applies to cases that do not involve fraud, suppression, or misstatements.
New Monetary Limits for Filing Appeals
The GST Council has recommended setting monetary thresholds for filing appeals by the department in various courts to reduce government litigation. The limits are ₹20 lakh for the GST Appellate Tribunal, ₹1 crore for the High Court, and ₹2 crore for the Supreme Court.
