GST Council Meet: Nirmala Sitharaman Announces Rate Changes and Exemptions

Finance Minister Nirmala Sitharaman chaired the 53rd Goods and Services Tax (GST) Council meeting on Saturday, June 22, at Bharat Mandapam in New Delhi. Government officials deliberated on tax rates for various commodities and services based on recommendations from the group of ministers (GoM).

Major Announcements:

1. Pan-India Biometric Authentication: The GST Council approved the rollout of biometric-based Aadhaar authentication across India to combat fraudulent input tax credit claims made through fake invoices.
2. Uniform 12% GST Rate on Milk Cans and Carton Boxes: A uniform GST rate of 12% on all milk cans (made from steel, iron, aluminum, etc.) was recommended to avoid disputes. The GST on carton boxes and cases made from both corrugated and non-corrugated paper or paperboard was reduced from 18% to 12%, benefiting horticulturists and apple growers in Himachal Pradesh and Jammu & Kashmir. Additionally, a 12% GST rate was recommended for solar cookers and all types of sprinklers.
3. GST Exemption on Platform Tickets: The sale of platform tickets and services such as retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services offered by Indian Railways are now exempt from GST.
4. Monetary Limits for Filing Appeals: The GST Council set monetary limits for filing appeals by the tax department: ₹20 lakh for the GST Appellate Tribunal, ₹1 crore for the High Court, and ₹2 crore for the Supreme Court. The maximum amount for pre-deposit for filing appeals before the appellate authority was reduced from ₹25 crore CGST and ₹25 crore SGST to ₹20 crore CGST and ₹20 crore SGST.
5. GST Exemption on Hostel Accommodations: Services for hostel accommodation outside educational institutions, up to ₹20,000 per person per month, are now exempt from GST. This exemption is applicable for stays up to 90 days, benefiting students and working individuals.
6. Waiver of Interest Penalties on Demand Notices: Interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20 were waived for taxpayers who pay the full tax amount demanded in the notice by March 31, 2025.
7. ITR Deadline Extended for Small Taxpayers: The deadline for furnishing returns for small taxpayers was extended from April 30 to June 30 for the fiscal year 2024-25 and subsequent years.
8. Extension of ITC on Invoice: The GST Council extended the deadline for availing input tax credit (ITC) on any invoice or debit note filed up to November 30, 2021, for the fiscal years 2017-18, 2018-19, 2019-20, and 2020-21. This change will be applied retrospectively from July 1, 2017.
9. Exemption of ENA: The GST Council recommended amending GST laws to exclude rectified spirit/Extra Neutral Alcohol (ENA) from the scope of GST when supplied for manufacturing alcoholic liquors for human consumption.
10. Decision on Petrol and Diesel Tax: FM Sitharaman reiterated the central government’s intent to bring petrol and diesel under the GST framework, emphasizing that the groundwork for this inclusion has been laid. However, the decision now lies with state governments, as they play a crucial role in determining the rate of taxation.

The meeting saw participation from Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, alongside finance ministers from various states and Union Territories (with legislatures), and senior officials from both union and state governments.