New Delhi: The Goods and Services Tax (GST) Council convened its 53rd meeting under the leadership of Union Finance Minister Nirmala Sitharaman. This significant gathering addressed crucial tax-related matters and introduced several reforms to benefit taxpayers across India.
Relief for Taxpayers
- Platform Tickets Exempted from GST: In a move aimed at easing the burden on commuters, the GST Council decided to exempt services related to platform tickets provided by the Indian Railways from the Goods and Services Tax. As a result, railway platform tickets are set to become more affordable shortly.
Key Recommendations and Reforms
- Uniform GST Rate for Milk Cartons: The Council recommended a uniform GST rate of 12% on all milk cartons. This simplification ensures consistency and streamlines tax compliance for milk producers and consumers alike.
- Interest Waiver on Tax Demand Notice Penalties: Finance Minister Nirmala Sitharaman announced the Council’s recommendation to waive interest on penalties related to tax demand notices. This move provides relief to taxpayers facing such penalties.
- Hostel Accommodation Exemption: Services provided by hostels located outside educational institutions are now exempt from GST. Individuals availing of hostel facilities will benefit from this decision, with a monthly exemption limit of Rs 20,000 per person.
- Appeals Process Simplified: The GST Council set clear limits for filing appeals before tax authorities:
- Appellate Tribunal: Up to Rs 20 lakh
- High Court: Up to Rs 1 crore
- Supreme Court: Up to Rs 2 crore
- Biometric Authentication to Combat Fake Invoices: The Finance Minister emphasized the implementation of biometric authentication nationwide. This measure aims to curb fraudulent invoicing and enhance tax compliance.
- Railway Services and Pre-Deposit Amounts: The Council exempted GST on railway services such as ticket purchases, waiting room charges, and cloakroom fees. Additionally, battery-operated vehicles and intra-railway services will also be free from GST. Furthermore, the maximum pre-deposit amount for filing an appeal has been reduced to ₹20 crore for both Central GST (CGST) and State GST (SGST).
In summary, the 53rd GST Council meeting witnessed significant decisions that will impact taxpayers, streamline processes, and promote transparency in the tax system. The Finance Minister’s commitment to inclusive reforms reflects the government’s dedication to economic growth and ease of doing business.
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