GST Council Meeting: Exemptions On Railway Platform Tickets, Student Hostels And More (image-X/PIB_India)

On Saturday, the Goods and Services Tax (GST) Council had its 53^rd meeting in New Delhi and proposed several recommendations related to tax exemptions on various items such as milk cans, solar cookers, and more. Chaired by Union Finance Minister Nirmala Sitharaman, it was the first meeting of the federal indirect tax body after the formation of the new government.

Here are the ten key takeaways from the GST Council meeting:

Read Also: Top-Level Executives Have Positive Perception On GST Reforms: Deloitte Survey

1. The Council recommended a pan-India implementation of biometric-based Aadhaar authentication to check fake invoicing. The finance minister said the move will help fight fraudulent input tax credit claims made using fake invoices.
2. Services provided by Indian Railways, such as waiting rooms, retiring rooms, battery-operated cars, cloakroom facilities, and the sale of platform tickets, are now exempt from GST.
3. A uniform rate of 12% on milk cans, including iron, steel, and aluminium, will be applicable. GST on cartons, boxes, and cases of corrugated and non-corrugated paper has been reduced from 18% to 12%.
4. The Council recommended exempting hostel accommodations for over 90 days outside educational institutions. This applies to hostel fees of up to Rs 20,000 per person. This exemption is applicable for students and not for tourists, Sitharaman clarified.
5. The council recommended an exemption for the fertiliser sector from its present 5% GST. Recommendations by the Standing Committee on Chemicals and Fertilisers were discussed by the Council in February to reduce GST on raw materials and nutrients for the benefit of farmers and manufacturing companies.
6. Sanitary napkins, which were earlier taxed at 12%, will attract no tax this time. Likewise, flour or atta, earlier taxed at 3.5%, will not be taxed.
7. GST on products such as televisions, detergents, and cosmetics has been reduced from 28% to 18%. Mobile phones, washing machines, refrigerators, and other electrical appliances, which were earlier taxed at over 31%, have also been reduced to 18%.
8. “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 November 30, 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 July 1, 2017, the council has made a recommendation,” said the minister.
9. Waiver on interest and penalties on demand notices issued under Section 73 for the financial years 17-18, 18-19, and 19-20. This is only applicable in cases where the entire tax is paid by March 2025.
10. The monetary limit for filing an appeal by the tax department is Rs 20 lakh for GSTAT, Rs 1 crore for HC, and Rs 2 crore for SC. The pre-deposit for filing an appeal before the tribunal has been reduced to 20% and Rs 20 crore each for CGST and SGST. The time limit to file GSTR-4 has been extended until June 30.