Post-budget session, there will be another meeting.
“The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation”, said Union Finance Minister and the chair of the GST Council Nirmala Sitharaman at a press conference after the meeting.
This was the first meeting of the GST council after the formation of the new government.
To reduce govt litigation, a monetary limit has been recommended of Rs 20 lakh for GST appellate tribunal Rs 1 cr for HCs, Rs 2 cr for SCs for filing of appeals by the department.
Indian Railways services exempted from GST
Services provided by Indian Railways like platform tickets have been exempted from GST, said the Finance Minister. “This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases,” she added.
Linking of Aadhaar biometric authentication
To facilitate GST registration, Aadhaar biometric authentication is mandatory for new registrations across the country, as per the GST council.
Waiver of interest on penalties on tax demand notice
The council decided to wave off interest and penalties for demand notices issued under sector 73 of GST act.
GST rate on milk cans:
The council recommended to prescribe a uniform rate of 12 per cent on all milk cans, said FM. This will be the rate applicable. “They have a standard shape so that will determine what is a milk can and what is not. The council has also recommended to prescribe a uniform GST rate of 12 per cent on all carton boxes and cases. This will particularly help the apple growers of Himachal Pradesh and Jammu and Kashmir,” she said.
GST on carton boxes:
12 per cent GST rate has been recommended on all carton boxes.
GST rates on fertilisers
The GST Council has sent the request to reduce GST on fertiliser to GoM on rate rationalisation.
Currently, a GST of 5 per cent is levied and the sector, for a longtime now, has been demanding for an exemption from GST on fertilisers.
During its 45th and 47th meetings, which took place in September 2021 and June 2022, the GST Council discussed the possibility of further reducing the tax on fertilisers. However, the council did not suggest changing the rates.
What is the GST Council?
The GST Council is a constitutional body in India that oversees the implementation and regulation of the Goods and Services Tax.
Chaired by the Union Finance Minister and comprising state finance ministers, the Council makes recommendations on various GST-related matters, including tax rates, exemptions, thresholds, and administrative processes.
The primary aim is to ensure uniformity and efficiency in the GST system across the country.
The Council typically meets periodically, with meetings held as needed to address pressing issues, usually every few months, with the last meeting concluding on October 7, 2023.
What happened at the October 7 meet?
The 52nd Council had introduced several significant changes including an amnesty scheme for appeals against demand orders, clarification on taxability of personal and corporate guarantees, and mandatory Input Service Distributor registration under GST.
Other recommendations also included recognizing Special INR Vostro accounts for export services, GST exemptions for certain public services, and reducing GST on molasses from 28% to 5%.
Content Source: economictimes.indiatimes.com