SRINAGAR: Jammu and Kashmir stands to gain significantly from the recent decisions made by the GST Council during its 53rd meeting on Saturday. Key measures, such as the adjustment of tax rates on accommodation services for students and solar cookers, alongside a series of taxpayer-friendly initiatives, are expected to have a positive impact on the region’s economy and its residents.
For Jammu and Kashmir, the uniform 12% GST rate on all carton boxes and cases made of corrugated and non-corrugated paper or paper board is particularly beneficial. This change will support apple growers in the region, a key sector of the local economy.
Additionally, the Council recommended a 12% GST rate on all types of sprinklers, including fire water sprinklers, and solar cookers, whether they use a single or dual energy source. These adjustments are expected to promote the use of renewable energy and sustainable agricultural practices in Jammu and Kashmir.
In a notable development, the GST Council recommended exempting accommodation services up to Rs 20,000 per person per month from GST, provided these services are supplied for a minimum continuous period of 90 days.
The Council also introduced measures to reduce litigation by fixing monetary limits for tax officers to file appeals before various judicial bodies, including Rs 20 lakh for the GST Appellate Tribunal, Rs 1 crore for the High Court, and Rs 2 crore for the Supreme Court. Additionally, the required pre-deposit amount for filing appeals under GST has been reduced, easing cash flow and working capital constraints for taxpayers.
Finance Minister Nirmala Sitharaman, while briefing reporters, highlighted that these changes are aimed at trade facilitation, easing the compliance burden, and providing relief to taxpayers. The next GST Council meeting, scheduled for August, will focus on rate rationalisation, with a presentation from the Group of Ministers on GST rate rationalisation led by Bihar Deputy Chief Minister Sumant Chaudhary.
To further support taxpayers, the Council decided to waive 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 is paid by March 31, 2025.
GST, introduced on July 1, 2017, has brought about significant changes, including moderating the prices of various products and services. Items like mobile phones, televisions, refrigerators, washing machines, and air conditioners have become more affordable, reducing the financial burden on households and improving affordability.
The Council also referred the recommendation to exempt GST on fertilizers and reduce rates on raw materials to the Group of Ministers on rate rationalisation. Currently, fertilizers attract a 5% GST, while raw materials such as sulphuric acid and ammonia face an 18% tax.
Sitharaman Pre-Budget Meetings: Kashmir Apple Concerns Highlighted
In another taxpayer-friendly move, the Tax Collected at Source (TCS) rate for e-commerce suppliers was reduced from 1% to 0.5%, easing the financial burden on suppliers using e-commerce platforms. Services provided by Indian Railways to the general public, such as platform tickets, retiring rooms, cloakroom services, and battery-operated car services, will be exempt from GST.
The Council also set a sunset date of April 1, 2025, for GST anti-profiteering provisions, with current cases to be handled by the Principal bench of the GST Appellate Tribunal instead of the Competition Commission of India. Furthermore, the deadline to avail input tax credit for invoices or debit notes for FY 2017-18 to FY 2020-21 was fixed at November 30, 2021.
Finance Minister Sitharaman reassured taxpayers that the government’s intention is to simplify compliance requirements, with only 1.96% of all active tax assessees having received notices from Central GST. The measures taken by the GST Council aim to make life easier for GST assessees, promoting a more efficient and taxpayer-friendly system.
(With PTI inputs)
