The 53rd meeting of the Goods and Services Tax (GST) Council was chaired by Finance Minister Nirmala Sitharaman today, 22 June, 2024 at New Delhi.
Here is a breakdown of the key highlights of the decisions taken at the meeting:
Monetary Thresholds for Appeals
The Council revised pre-deposit requirements for appeals filed before the Goods and Services Tax Appellate Tribunal (GSTAT). Taxpayers with cases below ₹20 lakhs will now face no pre-deposit, while those exceeding ₹1 crore will need to pre-deposit the amount before the High Court.
Interest and Penalty Relief
The Council announced a potential waiver of interest and penalties levied on tax demand notices issued under Section 73 of the GST Act between FY 2017-18 and FY 2019-20. This move is expected to benefit taxpayers with genuine disputes.
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Faster Dispute Resolution
To expedite the resolution process, the Council mandated a notification setting a 3-month window for filing appeals before the GSTAT.
Cash Ledger Benefit
Businesses can now enjoy an interest-free period on funds deposited in their Electronic Cash Ledger until the due date for tax payment.
Aadhaar-based Registration
The Council approved a pan-India rollout of biometrically authorised Aadhaar registration for GST registration, enhancing security and streamlining the process.
Tax Exemptions
Indian Railways services, including platform ticket sales, received a GST exemption. Additionally, hostel accommodation outside educational institutions with monthly charges below ₹20,000 will be exempt from GST.
GST Rate Clarifications
The Council clarified tax rates on specific goods, including a uniform 12% GST for carton boxes and non-corrugated paper boxes. Solar cookers will also benefit from a reduced 12% GST rate.
Input Tax Credit Deadline
Businesses could claim input tax credit for FY 2018-19 and FY 2019-20 until November 30, 2021, as clarified by the council.
The Council, however, did not discuss the imposition of GST on online gaming, casinos, and horse racing and the Union Finance Minister refused to reply to queries of the same.
Further, it was acknowledged that the fitment committee has received a formal representation regarding insurance related Goods and Services Tax issues.
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