In the 53rd GST Council meeting held on June 22, 2024, notable announcements were made by Finance Minister Nirmala Sitharaman. Sitharaman chaired the meeting, which was attended by state ministers, and addressed key measures. The measures on as tax adjustments, integration of Aadhaar biometrics, exemptions in railway services, etc. were announced. Here’s a comprehensive overview of the main points from the meeting:

Biometric Authentication using Aadhaar

Proposals for the nationwide implementation of biometric-based Aadhaar authentication were disclosed by Finance Minister Nirmala Sitharaman. This initiative aims to enhance tax compliance by combating fraudulent claims for input tax credit through the use of fake invoices.

GST Rate for Milk Cans
A uniform GST rate of 12% has been introduced for all milk cans, regardless of the material they are made from, be it steel, iron, or aluminium. This action is expected to standardize the tax treatment of these products.

Inclusion of Petrol and Diesel in GST
The central government restated its plan to bring petrol and diesel under the GST regime, pending agreement among states on the applicable tax rate. This move is considered a significant step toward the consistent taxation of fuel across the country.

Indian Railways Services
The council has granted a GST exemption on platform tickets in a bid to reduce the financial burden on passengers. This decision aligns with broader efforts to make railway services more affordable for the public.

Reduction in GST for Carton Boxes
The GST rate on various types of carton boxes has been reduced from 18% to 12%. This adjustment is intended to benefit both manufacturers and consumers by lowering the overall cost of these essential packaging materials.

Exemption for Hostel Accommodation
Services related to hostel accommodation outside educational institutions have been exempted from GST up to Rs 20,000 per person each month. This exemption aims to make hostel accommodation more affordable for non-student residents.

Central Support and Conditional Loans to States
During her address, Finance Minister Sitharaman stressed the Union Government’s commitment to supporting states through prompt tax devolution, Finance Commission grants, and GST compensation settlements. She highlighted the ‘Scheme for Special Assistance to States for Capital Investment’, mentioning that while most loans are unrestricted, a portion remains contingent on states implementing citizen-centric reforms and specific capital projects across sectors. Sitharaman encouraged states to leverage these loans by meeting the stipulated criteria.

Extension of GSTR 4 Filing Deadline for Small Taxpayers
To ease the burden on small taxpayers, the Council proposed extending the time limit for submitting the details and returns in the form GSTR 4 from 30th April to 30th June. This extension will be applicable for returns for the Financial Year 2024-25 onwards.