No tax on platform tickets, services by Railways: Big GST Council decisions
The 53rd GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, made a host of recommendations relating to taxation.
Tax exemption on services provided by Indian Railways and biometric-based Aadhaar authentication to check fake invoicing. Sitharaman, addressing a press conference, said the Centre’s intention was clear on bringing petrol and diesel under GST and left it to the states to come on board and decide the GST rate on fuel.
GST COUNCIL MEETING: TOP ANNOUNCEMENTS
The council has suggested a uniform 12% GST on all solar cookers, whether it has a single or dual energy source.
Services provided by Indian Railways to the common person, including sale of platform tickets, facility of retiring rooms, waiting rooms, cloakroom services, battery operated car services are now exempted from GST.
Hostels for students located outside educational institutions are also exempted from GST. For students and working professionals, the council has recommended exempting accommodation services having a value of supply up to Rs 20,000 per person per month.
The council has recommended a uniform rate of 12% on all milk cans, irrespective of the construction material. “They have a standard shape so that will determine what is a milk can and what is not,” she said.
A uniform GST rate of 12% will be applicable on all carton boxes and cases of both corrugated and non-corrugated paper or paper board. “This will in particular help the apple growers of Himachal Pradesh, J&K,” the Finance Minister said.
All types of sprinklers, including fire water sprinklers, will attract 12% GST, Sitharaman said.
The Union Minister said biometric-based Aadhaar authentication would be rolled out on an all-India basis. “This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases,” she said.
To help small taxpayers, the council has recommended extending the time limit to furnish the details and the returns in the form GSTR 4 from April 30 to June 30.
The GST Council has also recommended waiving interest and penalties for demand notices that have been issued under Section 73 of the GST Act, including cases not involving fraud, suppression or misstatements.
To reduce government litigation, the council has recommended a monetary limit of Rs 20 lakh for GST appellate tribunal, Rs 1 crore for High Court and Rs 2 crore for Supreme Court for filing of appeals by the department.