The 53rd meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, yielded a plethora of recommendations pertaining to taxation. Among the key decisions were exemptions on services provided by Indian Railways and the introduction of biometric-based Aadhaar authentication to curb fraudulent invoicing.
During the press conference, Sitharaman underscored the government's commitment to integrating petrol and diesel into the GST framework, while deferring the decision on the GST rate for these fuels to the states.
The meeting's top announcements included several significant recommendations:
1. A uniform GST rate of 12% on all solar cookers, regardless of whether they have a single or dual energy source.
2. Exemption of GST on various services offered by Indian Railways to the general public, such as platform tickets, retiring rooms, waiting rooms, cloakroom services, and battery-operated car services.
3. GST exemption for hostels outside educational institutions catering to students.
4. Proposed exemption of GST on accommodation services valued at up to Rs 20,000 per person per month for students and working professionals.
5. Uniform GST rate of 12% on all types of milk cans, based on their standard shape.
6. Standardized GST rate of 12% on carton boxes and cases made from both corrugated and non-corrugated paper or paperboard, aimed particularly at benefiting apple growers in Himachal Pradesh and Jammu & Kashmir.
7. Application of a 12% GST on all sprinklers, including fire water sprinklers.
Sitharaman also announced the nationwide rollout of biometric-based Aadhaar authentication, aimed at preventing fraudulent input tax credit claims through fake invoices.
In a move to assist small taxpayers, the council recommended extending the deadline for furnishing details and returns in the GSTR 4 form from April 30 to June 30.
Furthermore, the council proposed waiving interest and penalties for demand notices issued under Section 73 of the GST Act, excluding cases involving fraud, suppression, or misstatements.
To streamline government litigation, the council suggested monetary limits of Rs 20 lakh for GST appellate tribunals, Rs 1 crore for High Courts, and Rs 2 crore for the Supreme Court regarding the filing of appeals by the tax department.
