Finance Minister Nirmala Sitharaman announced that the next meeting of the Goods and Services Tax (GST) Council is tentatively scheduled for mid to late August. The upcoming session aims to address pending agenda items from today’s meeting, which saw significant decisions aimed at easing the compliance burden and providing relief to taxpayers.
Key Exemptions for IRCTC Services
The GST Council has proposed several key exemptions for services provided by the Indian Railways Catering and Tourism Corporation (IRCTC) to the general public. These include:
- Platform Tickets: The sale of platform tickets will now be exempt from GST.
- Retiring Rooms, Waiting Rooms, Cloakroom Facilities: Services such as retiring rooms, waiting rooms, and cloakroom facilities will be GST-exempt.
- Battery-Operated Car Services: These services provided by IRCTC will also benefit from the GST exemption.
Impact on Insurance and Other Sectors
In addition to the IRCTC exemptions, the GST Council recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. Taxpayers who pay the full tax amount demanded by March 31, 2025, will benefit from this waiver.
Extensions and Uniform Rates
The Council approved an extension for availing input tax credit (ITC) on any invoice or debit note. For returns filed up to November 30, 2021, the deadline for ITC claims for the fiscal years 2017-18 to 2020-21 is now deemed to be November 30, 2021. To curb government litigation, monetary thresholds for filing appeals by departments were set: Rs 20 lakh for the GST appellate tribunal, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court.
Support for Small Taxpayers and Compliance Easing
To assist small taxpayers, the deadline for furnishing returns was extended from April 30 to June 30 for the fiscal year 2024-25 and subsequent years. All types of sprinklers, including fire and water sprinklers, will attract a uniform GST rate of 12 percent. Accommodation services valued up to Rs 20,000 per person per month, provided for a continuous period of at least 90 days, will also be exempt, benefiting hostels and similar accommodations.
Biometric Authentication and Rate Rationalization
The Council recommended the phased rollout of biometric-based Aadhaar authentication for GST registration applicants across India. Bihar’s Deputy Chief Minister Samrat Chaudhary has been appointed as the Chairman of the Group of Ministers (GoM) on Rate Rationalization, with a status report to be presented at the next meeting.
Uniform GST Rates
The Council proposed a uniform GST rate of 12 percent on all milk cans, regardless of their material, and on all types of carton boxes and cases made from both corrugated and non-corrugated paper or paperboard. A 12 percent GST rate was also recommended for solar cookers, whether single or dual energy source.
Inclusion of Petrol and Diesel in GST Framework
Sitharaman reiterated the central government’s intent to bring petrol and diesel under the GST framework. She highlighted that the groundwork for this inclusion was laid during the initial implementation of GST and emphasized that the decision now lies with the state governments. The central government believes that incorporating petrol and diesel into GST would streamline tax rates and potentially reduce prices for consumers.
