The 53rd GST Council Meeting was held on June 22, 2024, in New Delhi, chaired by Union Finance Minister Nirmala Sitharaman. This crucial meeting was the first in the third term of the Modi Government and the last one before the Union Budget 2024.
The main agenda items included amendments to the tax structure, addressing the issue of fake invoicing, and responding to taxpayer concerns regarding interest and penalties.
Top Highlights of the GST Council Meeting
- Tax Revisions on Essential Goods
- Atta (Flour): Previously taxed at 3.5% in the pre-GST era, it now falls under the 0% tax category.
- Sanitary Napkins: Once taxed at 12%, they are now exempt from GST.
- Unbranded Ayurvedic Medicines: The tax rate has been reduced from 12% to 5% under the GST regime.
- Electronic Appliances: Items like refrigerators and washing machines, previously taxed at 31%, are now taxed at 18%.
2. Reduction in Tax Rates
The council decided to lower the tax rate from 18% to 12% on items such as milk cans, solar cookers, and packaging materials like cartons, boxes, and cases used for fruits.
- Inclusion of Petrol and Diesel Under GST
The central government reaffirmed its plan to bring petrol and diesel under the GST regime, pending consensus among states on the applicable tax rate. This move aims to standardise fuel taxation across the country.
- Exemptions for Railway Services
The council exempted railway platform tickets, retiring room facilities, cloakrooms, and battery-operated car services provided by Indian Railways from GST.
- Hostel Accommodation Exemption
Services related to hostel accommodation outside educational institutions are now exempt from GST for amounts up to Rs 20,000 per person per month. This exemption is designed to make hostel accommodation more affordable for non-student residents.
- Biometric-Based Aadhaar Authentication
The GST Council recommended the phased nationwide implementation of biometric-based Aadhaar authentication for GST registration applicants. This measure aims to enhance registration integrity and curb fraudulent input tax credit claims through fake invoices.
- Extension of GSTR-4 Filing Deadline
The Council recommended extending the deadline for submitting details and returns in the form GSTR-4 from April 30 to June 30, applicable from the Financial Year 2024-25 onwards.
- Waiver of Interest and Penalties
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 not involving fraud, suppression, or misstatements.
These decisions are aimed at simplifying the GST framework, ensuring fair taxation, and making compliance easier for taxpayers.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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