June 22, 2024 – Finance Minister Nirmala Sitharaman made major announcements at the 53rd GST Council meeting, bringing big changes and new measures. Here’s the scoop:
Aadhaar Biometric Authentication Biometric-based Aadhaar authentication will roll out nationwide to combat fake invoicing and fraudulent input tax credit claims. Sitharaman emphasized this move to enhance tax compliance.
Uniform GST on Milk Cans A 12% GST rate will now apply to all milk cans, regardless of material. This aims to standardize tax treatment for these products.
Fuel Under GST The government reiterated its intent to bring petrol and diesel under the GST regime, pending consensus on tax rates among states. This could lead to uniform fuel taxation across India.
Railway Services Exemptions Platform tickets will be exempt from GST, making railway travel slightly cheaper for passengers.
Reduced GST on Carton Boxes GST on carton boxes has been reduced from 18% to 12%, benefiting both manufacturers and consumers by lowering packaging costs.
Hostel Accommodation Exemption GST exemption up to ₹20,000 per person monthly for hostel accommodation outside educational institutions aims to make living expenses more affordable for non-student residents.
Support and Loans to States Sitharaman highlighted the Union Government’s commitment to supporting states with timely tax devolution, Finance Commission grants, and GST compensation. The ‘Scheme for Special Assistance to States for Capital Investment’ was noted, encouraging states to implement citizen-centric reforms to leverage these loans.
Extension for Small Taxpayer Returns The deadline for filing GSTR 4 returns for small taxpayers is extended from April 30 to June 30, starting from the Financial Year 2024-25.
Interest and Penalties Waiver Interest and penalties will be waived for non-fraudulent cases under Section 73 of the GST Act. This is aimed at providing relief to honest taxpayers.
New Monetary Limits for Appeals To reduce litigation, new monetary thresholds for filing appeals have been set: ₹20 lakh for GST Appellate Tribunal, ₹1 crore for High Court, and ₹2 crore for Supreme Court.
Stay tuned for more updates and detailed coverage on these major GST changes!
