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12% GST imposed on milk cans and GST removed from Railway Tickets, Check GST on new items


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

Aadhaar-based Biometric Authentication

The government plans to roll out biometric-based Aadhaar authentication on an all-India basis. This initiative aims to combat fraudulent input tax credit claims made through fake invoices.

GST Rate on Milk Cans

A uniform GST rate of 12% was announced for all milk cans, regardless of the material they are made of (steel, iron, or aluminum). This measure aims to standardize the tax treatment of milk cans.

Petrol and Diesel under GST

The central government intends to bring petrol and diesel under the GST regime, pending consensus among states on the applicable tax rate. This move aims to achieve uniform taxation of fuel across the country.

Indian Railways Services

The GST exemption has been granted on platform tickets 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 has been 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 are now exempt from GST up to ₹20,000 per person each month. This exemption aims to make hostel accommodation more affordable for non-student residents.

Central Support and Conditional Loans to States

The Union Government is committed to aiding states through timely tax devolution, Finance Commission grants, and GST compensation settlements. The ‘Scheme for Special Assistance to States for Capital Investment’ provides loans to states, with a portion being conditional on implementing citizen-centric reforms and specific capital projects across sectors.

Extension of GSTR 4 Filing Deadline for Small Taxpayers

To help small taxpayers, the Council has recommended extending the time limit to furnish details and returns in the form GSTR 4 from April 30th to June 30th. This extension applies to returns for the Financial Year 2024-25 onwards.

Waiver of Interest and Penalties for Non-Fraudulent Cases

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

The GST Council has recommended setting monetary thresholds for filing appeals by the department in various courts. The recommended limits are ₹20 lakh for the GST Appellate Tribunal, ₹1 crore for the High Court, and ₹2 crore for the Supreme Court.

These measures were announced during the 53rd GST Council meeting and aim to streamline tax policies, enhance tax compliance, and make certain goods and services more affordable for the public.

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