New Delhi: The 53rd GST Council, which met on Saturday which was chaired by the Finance Minister has announced various recommendations relating to taxation, ITC claims and demand notices.
Services provided by Indian Railways like platform tickets exempted from GST.
GST Council recommended a uniform rate of 12% on all milk cans. Waiver of interest on penalties on tax demand notice was also recommended by the Council.
Carton boxes and solar cookers will attract 12% GST.
Hostels located outside educational institutions for students are now exempted from the GST, subject to Rs 20,000 per person per month rent and stay minimum for at least 90 days.
FM also announced the extension of the time limit for GSTR4 till June 30 from FY 2024-25 onwards.
The Council also announced the insertion of functionality in GSTR1A for any omission in GSTR1. After this GSTR3B can be filed.
For 2017-18, 2018-19, 2019-20 for demand notices, interest and penalty will be waived off if tax is paid by March 31, 2025.
To reduce litigation, the Council recommended a limit of Rs 20 lakh for the appellate tribunal, Rs 1 crore for the High Court and Rs 2 crore for the Supreme Court for filing of appeal.
Abhishek Jain, indirect tax head & partner, KPMG, said, “Interest and penalty waiver for tax demands paid under notices issued under Section 73, is a very pleasing announcement and would go a long way in curtailing unwarranted litigations under GST.”
“This would be specifically impactful for litigations which were majorly linked to interpretative issues specifically those for uncertainties involved with implementation of GST. It’ll be worthwhile to see the nuances of this amnesty specifically their coverage for cases where interest/ penalty has already been paid or taxes paid before issuance of notices.”
FM also announced there will be a roll out of biometric authentication pan-India to check fake invoicing in a phased manner.
