The GST Council has forwarded a recommendation to exempt the fertiliser sector from the existing 5% GST to the Group of Ministers (GoM) on rate rationalisation. Andhra Pradesh finance minister P. Keshav announced the decision following the council's meeting on Saturday.
The council evaluated suggestions made by the Standing Committee on Chemicals and Fertilisers earlier this year, which proposed reducing GST on both fertilisers and their raw materials. Currently, fertilisers are taxed at 5%, while essential raw materials like Sulphuric Acid and Ammonia are subject to a higher GST rate of 18%.
This meeting, the first in eight months, addressed several significant issues, including tax rate rationalisation, trade facilitation, and dispute resolution. While no final decision on GST rate rationalisation was reached, Bihar deputy chief minister Samrat Chaudhary was appointed to lead the GoM on the matter.
Key Outcomes and Decisions
Accommodation Services and Solar Cookers: The GST Council agreed to revise tax rates on various items, including accommodation services for students and solar cookers. These changes are part of broader efforts to rationalise tax rates and provide relief to specific sectors.
Taxpayer-Friendly Measures: The council approved several measures aimed at easing taxpayer burdens, including waiving interest and penalties for demand notices issued during the initial three years of GST implementation.
Aadhaar Authentication: A phased rollout of biometric-based Aadhaar authentication for registration applicants was recommended to enhance the integrity and security of the GST registration process.
Appeal Limits: The council decided on monetary thresholds for tax officers to file appeals before the GST Appellate Tribunal, high courts, and the Supreme Court, set at ₹20 lakh, ₹1 crore, and ₹2 crore, respectively.
Reduced Tax Rates: The council recommended lowering GST to 12% on milk cans made of steel, iron, or aluminium; carton boxes and cases of both corrugated and non-corrugated paper or paperboard; solar cookers; and sprinklers.
Railway Services Exemption: The GST Council also suggested exemptions for services provided by Indian Railways, including the sale of platform tickets, retiring room facilities, cloakroom services, and battery-operated car services.
Ongoing Discussions
The council did not discuss the issue of the 28% GST on the full value of bets for online gaming companies, which came into effect on October 1. This topic, along with other pending matters, remains on the council's agenda for future meetings.
These decisions mark a significant step towards simplifying GST compliance and making the tax system more equitable. The GST Council's ongoing efforts to address sector-specific concerns and streamline tax processes are expected to foster a more business-friendly environment across India.
