The 53rd GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, was held on Saturday, June 22.
The meeting resulted in several important decisions aimed at easing business operations and providing relief to taxpayers.
Here are the major takeaways from the meeting:
Platform Tickets Now GST-Free
The GST Council has decided to exclude services provided by Indian Railways to the common man from the GST ambit.
This includes:
- Sale of platform tickets
- Retiring room and waiting room facilities
- Battery-operated cars
Additionally, intra-railway supply is now exempt from GST.
Waiver of Interest and Penalty on Certain Notices
Finance Minister Nirmala Sitharaman announced the waiver of interest and penalty on demand notices issued under Section 73 of the GST Act.
This applies to notices for the financial years 2017-18, 2018-19, and 2019-20 that do not involve fraud, suppression, or misrepresentation.
Increased GST Rates on Specific Items
The GST Council has recommended a 12% tax rate on the following items:
- Milk cans
- Carton boxes
- Solar cookers
All types of sprinklers, including fire sprinklers
Biometric Authentication to Prevent Fake Invoices
To combat the issue of fake invoices,
the GST Council will implement biometric authentication across the country in a phased manner.
Consideration to Bring Petrol and Diesel Under GST
The central government aims to bring petrol and diesel under the GST regime. Finance Minister Sitharaman stated that this requires cooperation from the states to decide the GST rate on fuels.
A Group of Ministers (GoM) has been formed to rationalize the rates and will submit its report to the GST Council in August.
Next GST Council Meeting in August
The next GST Council meeting is scheduled for mid-August. During this meeting, the remaining agenda will be discussed, and the GoM’s report on rate rationalization will be reviewed.
These decisions from the 53rd GST Council meeting are expected to have a significant impact on traders, MSMEs, and taxpayers, providing both relief and streamlined business operations.
