A GST Council meeting took place recently where the finance minister announced a few changes in the GST rates and exemptions. Which sector is having changes and how will the changes impact the economy? Goods and Services Tax is the single indirect tax that plays a crucial role in an individual’s daily consumption. In the current GST Council, departments like Aircraft Parts, Milk and, Cartoon Boxes, Solar Cookers, Poulatry, and Sprinklers changed. Let us find out more about it below.
GST Council Highlights
Changes In Goods Tax Rates
- Sprinklers: There will be 12% GST on all kinds of Sprinklers. It also includes the fire water sprinklers.
- Poultary Machinery Parts: Every part of Poultary Machinery will have 12% GST.
- Solar Cookers: Both single and dual-energy-source solar cookers will have a 12% GST.
- Cartoon Boxes: Paper Cartoon Boxes and cases will now have GST of 12% which was previously 18%.
- Mik Cans: All materials, including steel, iron, and aluminium cans will have 12% GST.
- Aircraft Parts and Tools: 5% IGST on all kinds of imports
Which Goods Will Have GST Exemptions
Defence Imports related to specified defence items will be free from IGST till 30 June 2029. The aerated beverages and energy drinks supplied to the Ministry of Defence will also remain exempted from IGST. RAMA Programme imports and SEZ imports will remain exempted from IGST.
Changes In Services Tax Rates
Students and working professionals living at a place on rent paying up to 20,000/ month for more than 90 days tenure will have GST exemption. Other services under the exemption include SPV services to Indian Railways and Indian Railways maintenance services to SPV, intra-railway services, platform tickets, retiring rooms, and battery cars service.
Other Crucial Updates
1. Waiver of interest and penalty on demand notices issued under section 73 for FY 17-18, 18-19, and 19-20. Applicable in cases where tax is paid entirely by March 2025.
2. The time limit for ITC on invoices/debit notes is deemed as 30 November 2021 rather than October for the financial year 2017-18 to the Financial year 2020-21.
3. The monetary limits for the tax department appeals are as follows: Rs. 20 lakhs for the GST Appellate Tribunal, Rs. 1 Crore for the High Court, and Rs. 2 Crore for the Supreme Court.
4. However, the pre-deposit for filing appeals is now lowered to Rs. 20 Crores for CGST and SGST each which was earlier Rs. 25 Crores. Pre-deposit for filing appeal before tribunal reduced to 20%
5. The date for the filing of GSTR 4 is now extended to 30 June 2024.
6. There won’t be any interest charges in case you have some amount available in the Electronic Cash Ledger on the due date under the delayed return filing.