Roadmap for rationalizing the GST rate, with continuously record-high revenues
The adoption of the goods and services tax, or "GST," in June 2017 marked a significant turning point in the tax history of India. Through the consolidation of many indirect tax regulations into a unified tax framework, this groundbreaking tax reform benefited a wide range of industries. India is one prominent example of a federal nation with a diverse population that has unified several tax regulations into a single system.
Additionally, Sitharaman declared that the GST Council had suggested pushing back the deadline for small taxpayers to file their returns from April 30 to June 30.
"The Council has proposed that the deadline for providing the details and returns in the form GSTR 4 be extended from April 30 to June 30 in order to assist small taxpayers. According to FM Sitharaman, this will be applicable to returns for the Financial Year 2024–2025 and beyond.
A rise in the economy, a larger base of taxpayers, an ever-expanding range of transactions subject to taxation, and noticeably higher compliance rates are all substantial contributors to the rise in tax revenue. Nonetheless, the inflationary trend that the economy has seen throughout this time has also been a major driver of this revenue rise. Since commodities were previously subject to taxation by the Union through the imposition of excise duties and by the States through the imposition of VAT, it was widely anticipated at the time of the introduction of the GST that consolidating them under a single tax regime would result in lower effective tax rates, which would benefit the household budget.
Verdict of the GST Council Meeting: FM Sitharaman makes ten major statements
A.Choosing a fuel and diesel tax under state government authority:
The central government's intention to include gasoline and diesel under the GST system was restated by FM Sitharaman. She emphasized that years ago, the foundation for this inclusion was established.
B.Exemption of ENA:
During its 52nd meeting, the GST Council made a recommendation to modify the GST laws in order to specifically exempt rectified spirit and Extra Neutral Alcohol (ENA) from the GST regime when they are used in the production of alcoholic beverages intended for human consumption. The GST Council has now suggested amending Section 9 of the CGST Act, 2017 to remove the provision prohibiting the imposition of GST on ENA used in the production of alcoholic liquor intended for human use.
C.Small taxpayers:
The GST Council extended the deadline for filing returns for the fiscal year 2024–2025 and later years from April 30 to June 30 in an effort to support small taxpayers.
"The Council has proposed that the deadline for providing the details and returns in the form GSTR 4 be extended from April 30 to June 30 in order to assist small taxpayers. According to FM Sitharaman, this will be applicable to returns for the Financial Year 2024–2025 and beyond.
D.Interest penalties on demand letters to be waived:
For the fiscal years 2017–18, 2018–19, and 2019–20, the GST Council today recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act. Cases that do not include fraud, suppression, or misstatement fall under this category. This waiver will be available to taxpayers who, by March 31, 2025, pay the entire tax amount asked in the notice.
E.Platform tickets are exempt from GST:
The GST Council suggested exempting some public services provided by Indian Railways as well as intra-railway transactions from GST. Platform ticket sales as well as services like battery-operated car services, retiring rooms, waiting rooms, and cloakrooms are no longer subject to GST.
The GST Council has also suggested lowering the maximum pre-deposit amount from ₹25 crore CGST and ₹25 crore SGST to ₹20 crore CGST and ₹20 crore SGST in order to file an appeal before the appellate authority.
H.12% consistent rate for carton boxes and milk cans:
F.Amount of money set aside for appeals filing:
A financial ceiling has been set by the GST Council on the amount that the tax department may appeal before the appellate authority in order to minimize government lawsuits. It has suggested that departments file appeals before the GST Appellate Tribunal, the High Court, and the Supreme Court with a financial ceiling of ₹20 lakh, ₹1 crore, and ₹2 crore, respectively.
The GST Council has also suggested lowering the maximum pre-deposit amount from ₹25 crore CGST and ₹25 crore SGST to ₹20 crore CGST and ₹20 crore SGST in order to file an appeal before the appellate authority.
G.Biometric authentication across India:
"Aadhaar authentication based on biometrics will be implemented nationwide." This would assist us in countering fraudulent input tax credit claims made in certain situations using fictitious invoices, the minister declared during the press conference following the 53rd GST Council meeting.
The GST Council suggested applying a consistent 12 percent GST tax to all milk cans, which include steel, iron, and aluminum, regardless of their intended usage. "They are called milk cans, but the rate that applies wherever they are used will ensure that there are no disputes," FM Sitharaman stated at the briefing.
Today's 53rd GST Council Meeting: Important topics to improve compliance, streamline the GST structure, and allay industry fears will be discussed and resolved at the June 22 GST Council meeting.
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