GST Council Announces Compliance Relief for Students and Professionals
Union Finance Minister Nirmala Sitharaman held a press conference following the 53rd GST Council Meeting in New Delhi, highlighting the Council’s latest recommendations. While the agenda did not include discussions on online gaming taxation, significant measures were introduced to ease GST compliance for assessees.
The Council’s recommendations included waiving interest and penalties for demand notices issued under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19, and 2019-20, provided the full tax demanded is paid by March 31, 2025. This move, as articulated by Finance Minister Sitharaman, aims to alleviate the burden on GST assessees.
Additionally, the Council proposed a monetary threshold for filing appeals by the tax department to minimize government litigation. Appeals to the GST Appellate Tribunal will now have a ₹20 lakh limit, while appeals to the High Court and Supreme Court will be restricted to ₹1 crore and ₹2 crore, respectively. Revenue Secretary Sanjay Malhotra clarified that the tax authority would refrain from filing appeals below these limits, though assessees retain the right to appeal.
In a move to enhance cash flow and reduce working capital constraints, the Council recommended lowering the pre-deposit amount for filing appeals under GST. The maximum pre-deposit for appeals to the appellate authority has been reduced from ₹50 crore to ₹40 crore, and for the Appellate Tribunal, it has been lowered from ₹100 crore to ₹40 crore.
To streamline the amendment process, the Council introduced a new optional facility through Form GSTR-1A. This will allow taxpayers to amend details in Form GSTR-1 for a tax period or declare additional details before filing their return in Form GSTR-3B.
Biometric Authentication and Rate Rationalisation
The Council also advocated for a phased rollout of biometric-based Aadhaar authentication for registration applicants nationwide. This initiative aims to fortify the registration process and combat fraudulent input tax credit claims made through fake invoices.
On the topic of online gaming companies, casinos, and horse racing, Finance Minister Sitharaman noted that the issue was not addressed in the meeting as it was not on the agenda.
In a bid to provide relief to students, the Council recommended that accommodations for students outside educational institutions should not attract GST, provided the value does not exceed ₹20,000 per person per month and the service is supplied for at least 90 continuous days. Similar provisions apply to working professionals living in rented accommodations such as hostels or hotels.
Furthermore, the Council proposed exemptions for services provided by Indian Railways, including the sale of platform tickets, use of retiring rooms, cloak room services, and battery-operated car services. These services, previously brought under GST to avail input tax credit, will now revert to their original exempt status, as confirmed by Revenue Secretary Malhotra.