53rd GST Council meeting key takeaways: No tax on platform tickets, tweaked tax rates | 10 major announcements

Union finance minister Nirmala Sitharaman addresses a press conference after the 53rd GST Council Meeting at the National Media Center in New Delhi on Saturday.

Finance Minister Nirmala Sitharaman announced several significant measures during the 53rd GST Council meeting held on Saturday, June 22, 2024. The session, chaired by Sitharaman and attended by state finance ministers, focused on tax amendments, Aadhaar biometric integration, and exemptions in railway services. Here are the key takeaways:

Aadhaar-based biometric authentication

“There is going to be a rolling out of biometric-based Aadhaar authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases,” announced Finance Minister Nirmala Sitharaman. This initiative aims to enhance tax compliance by curbing fraudulent practices such as fake invoicing.

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 is expected 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, aiming 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 is intended 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

During her address, 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

In order to help small taxpayers, the Council recommended extending the time limit to furnish the details and the returns in the form GSTR 4 from 30th April to 30th June. This will apply for returns for the Financial Year 2024-25 onwards,” the minister added.

Waiver of interest and penalties for non-fraudulent cases

Finance Minister Nirmala Sitharaman announced that 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

Finance Minister Nirmala Sitharaman further announced that the GST Council has recommended setting monetary thresholds for filing appeals by the department in various courts. “To reduce government litigation, the council has recommended a monetary limit of ₹20 lakh for the GST Appellate Tribunal, ₹1 crore for High Court, and ₹2 crore for the Supreme Court for filing appeals by the department,” she stated.

(With Inputs from Agencies)