GST Council’s Recent Decisions and Recommendations

GST Council’s Recent Decisions and Recommendations

The GST Council recommended a uniform GST rate of 12% on milk cans made of steel, iron, and aluminum, regardless of their use. This decision aims to prevent disputes over classification.

Waiver of Interest on Tax Demand Notices

Interest and penalties on tax demand notices under Section 73 will be waived if the tax is paid by March 31, 2025, for the financial years 2017-18, 2018-19, and 2019-20. This move is expected to reduce litigation related to GST.

Exemption for Indian Railways Services

Services provided by Indian Railways, such as platform tickets, are exempted from GST, providing relief from tax implications on these essential services.

Extension of GSTR4 Filing Deadline

The deadline for filing GSTR4 has been extended until June 30, starting from the financial year 2024-25 onwards. This extension aims to provide more time for taxpayers to comply with GST filing requirements.

Amendments in GSTR1A Functionality

Functionality in GSTR1A will be inserted to rectify any omissions in GSTR1 filings, enhancing compliance and accuracy in GST reporting.

Appellate Tribunal and Court Limits

To reduce litigation, the Council recommended filing limits: Rs 20 lakh for the appellate tribunal, Rs 1 crore for the High Court, and Rs 2 crore for the Supreme Court. This is aimed at streamlining the appeals process under GST.

Biometric Authentication Rollout

The GST Council announced the phased rollout of biometric authentication across India to curb fake invoicing and bogus GST registrations, strengthening compliance measures.

Meeting Details

The 53rd GST Council meeting was chaired by Union Finance Minister Nirmala Sitharaman and attended by various state representatives and senior officials. It was held after an eight-month gap, with the next meeting scheduled for mid-August to address remaining agenda items.

Multiple Choice Questions (MCQs):

  1. What is the uniform GST rate recommended by the GST Council on milk cans?
    • A) 5%
    • B) 12%
    • C) 18%
    • D) 28%
    • Answer: B) 12%
  2. For which financial years will interest and penalties be waived on tax demand notices, if paid by March 31, 2025?
    • A) 2020-21, 2021-22, 2022-23
    • B) 2018-19, 2019-20, 2020-21
    • C) 2017-18, 2018-19, 2019-20
    • D) 2019-20, 2020-21, 2021-22
    • Answer: C) 2017-18, 2018-19, 2019-20
  3. Which services provided by Indian Railways are exempted from GST?
    • A) Freight services
    • B) Platform tickets
    • C) Catering services
    • D) Parcel services
    • Answer: B) Platform tickets
  4. What is the extended deadline for filing GSTR4 starting from FY 2024-25?
    • A) March 31
    • B) June 30
    • C) December 31
    • D) January 31
    • Answer: B) June 30
  5. What measure did the GST Council announce to curb fake invoicing?
    • A) Mandatory audit for all businesses
    • B) Implementation of e-invoicing
    • C) Phased rollout of biometric authentication
    • D) Increased penalties for non-compliance
    • Answer: C) Phased rollout of biometric authentication