Many big decisions were taken in the first meeting of the GST Council in 2024. An important meeting was held today between the Finance Ministers of the states and union territories under the chairmanship of Union Finance Minister Nirmala Sitharaman. It has been recommended to waive interest and penalty on demand notices issued under Section 73 of the GST Act. Finance Minister Nirmala Sitharaman said that we can think only about limited issues. Another GST meeting will be held after the budget session.
Uniform tax on milk
Finance Minister Nirmala Sitharaman said that the GST Council has recommended a uniform rate of 12 percent on all milk cartons. Apart from this, it has also been recommended to waive interest on penalty on tax demand notice. The GST Council has recommended a limit of Rs 20 lakh for tax officials to file an appeal before the Appellate Tribunal. In this, a limit of Rs 1 crore has been fixed for the High Court and Rs 2 crore for the Supreme Court. Income received from hostels outside educational institutions by the GST Council. A tax exemption of Rs 20,000 per month per person is given on that income.
Andhra Pradesh Finance Minister P Keshav said the GST Council has sent a recommendation to the Group of Ministers to exempt the fertilizer sector from the current five per cent GST. This was recommended by the Standing Committee on Chemicals and Fertilizers in February. Currently, fertilizers attract five per cent GST while raw materials like sulphuric acid and ammonia attract a higher GST of 18 per cent.
Major decisions of the GST Council
The GST Council has recommended levying 12% GST on all solar cookers, irrespective of whether they are dual energy sources.
Indian Railways has exempted sale of platform tickets, retiring rooms, waiting rooms, cloakroom services, battery car services from GST.
Hostels for students outside educational institutions are also exempted. For this, up to Rs 20,000 per person per month has been exempted. These services are provided for a continuous period of minimum 90 days.
The council has recommended a uniform rate of 12 per cent on milk cartons. A rate of 12 per cent has been fixed on all carton boxes. A rate of 12 per cent will be applicable on all types of sprinklers including fire sprinklers. A 12 per cent GST rate will be applicable on all solar cookers.
The GoM formed to rationalize GST rates will present a status report in its next meeting. The Group of Ministers formed to rationalize the rates will be headed by the Deputy Chief Minister of Bihar.
