📷 Image Credits: Mint
The 53rd GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, took place on Saturday, June 22, 2024, and saw the announcement of several significant measures to revamp the tax system and enhance compliance. One of the major takeaways from the meeting was the implementation of Aadhaar-based biometric authentication to combat fake invoicing and fraudulent input tax credit claims. This move is expected to streamline tax compliance and curb malpractices in the system. Another key decision made during the meeting was the introduction of a uniform GST rate of 12% on all milk cans, regardless of their material composition. This step aims to standardize the tax treatment of milk cans and simplify the tax regime for this product. In a bid to include petrol and diesel under the GST ambit, the central government is awaiting consensus among states on the applicable tax rate, with the objective of ensuring uniform taxation of fuel across the country. Furthermore, the council granted a GST exemption on platform tickets to alleviate the financial burden on railway passengers, as part of the government’s efforts to make railway services more affordable. Additionally, the GST rate on various carton boxes was reduced from 18% to 12%, a move that is expected to benefit both manufacturers and consumers by lowering the overall cost of these essential packaging materials. Services related to hostel accommodation outside educational institutions were also exempted from GST up to Rs 20,000 per person per month, with the aim of making hostel accommodation more affordable for non-student residents. During her address, Finance Minister Sitharaman highlighted the Union Government’s commitment to supporting states through timely tax devolution, Finance Commission grants, and GST compensation settlements. She emphasized the importance of aiding states with capital investments and citizen-centric reforms through the ‘Scheme for Special Assistance to States for Capital Investment’. The Finance Minister also announced the extension of the time limit to furnish details and returns in the form GSTR 4 for small taxpayers, offering them more flexibility in compliance. The GST Council’s recommendations to waive interest and penalties for demand notices, set monetary thresholds for filing appeals, and streamline the appeals process across various courts are aimed at reducing litigation and ensuring a smoother tax administration system. These initiatives reflect the government’s commitment to enhancing tax compliance, easing the burden on taxpayers, and fostering a transparent and efficient tax regime in India.
