Union Finance Minister Nirmala Sitharaman announced several key decisions to enhance tax administration and expand the Goods and Services Tax (GST) regime after the 53rd GST Council meeting on Saturday.
Addressing the media, Sitharaman highlighted the implementation of biometric-based Aadhaar authentication on a national scale to combat fraudulent claims of input tax credit using fake invoices.
"The biometric-based Aadhaar authentication across India will help us combat fraudulent input tax credit claims made through fake invoices," Sitharaman stated.
Responding to queries about the inclusion of petrol and diesel under GST, Sitharaman reiterated the central government's longstanding intent to bring these fuels within the GST framework, citing the original vision set forth by former Finance Minister Arun Jaitley.
"The intention of GST, as introduced by Arun Jaitley, was to include petrol and diesel in GST. It is now up to the states to decide on the rate. The intent of my predecessor was very clear, we want petrol and diesel to come into GST," she emphasized.
Initially, when GST was rolled out on July 1, 2017, commodities such as crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were included under the GST law with the provision for taxation at a later date.
Additionally, Sitharaman announced measures to aid small taxpayers, including an extension of the deadline for filing details and returns under GSTR 4 to June 30, applicable from the financial year 2024-25 onwards.
Key outcomes from the 53rd GST Council meeting included:
Waiver of interest on penalties for tax demand notices.
Recommendation of a Rs 20 lakh limit for filing appeals by Tax Authorities before the Appellate Tribunal, with higher limits for High Courts and the Supreme Court.
Exemption of GST on services Railways provides to the public, sale of platform tickets, retiring rooms, waiting rooms, and battery-operated car services. Intra-railway supplies are also exempted.
Reduction of pre-deposit requirements for filing appeals.
Prescribing a uniform GST rate of 12 per cent on all milk cans and carton boxes.
Levying 12 per cent GST on all types of sprinklers and solar cookers.
Exemption of GST on hostel accommodation services outside educational institutions up to Rs 20,000 per person per month, provided the service is supplied for a continuous period of at least 90 days.
Furthermore, Sitharaman announced the appointment of Bihar's Deputy CM Samrat Choudhary as Chairman of the Group of Ministers (GoM) for Rate Rationalisation. Choudhary will submit a progress report on rate rationalisation at the next GST Council meeting expected in mid-August.
The decisions taken at the 53rd GST Council meeting reflect ongoing efforts to streamline taxation policies and foster economic growth through a unified and simplified GST framework across India.
