Union Finance Minister Nirmala Sitharaman on Saturday chaired a pre-budget meeting with state finance ministers followed by the 53rd meeting of the Goods and Services Tax Council. The FM assured the Centre's support to states through timely tax devolution and GST compensation arrears to stimulate growth.
Some key revisions in GST rates and big decisions were taken in the meeting.
A statement by the ministry said that several valuable suggestions were also put forward by the states for the inclusion in the Union Budget for FY 2024-25, along with state-specific requests.
While addressing a press conference, on being asked if fuel will be brought under GST Sitharaman said that the Centre wants to include petrol and diesel under GST.
"At the moment, the intention of the GST as it was brought in by former Finance Minister Arun Jaitley is to have the petrol and diesel in GST. It is up to the states to decide and come together and get petrol and diesel into GST. The intent of the Central Government is clear, we want the GST to include petrol and diesel."
Key decisions taken in the GST meeting:
1. The GST Council recommended a uniform rate of 12 per cent on all milk cans.
2. Waiver of interest on penalties on tax demand notice was recommended by the Council.
3. GST Council also exempted services by way of hostel accommodation outside educational institutions to the tune of Rs 20,000/person per month
4. The Council recommended a Rs 20 lakh limit for filing of appeal by Tax Authorities before the Appellate Tribunal, Rs 1cr for HC, Rs 2cr for SC.
5. Purchase of railway tickets and payments for waiting room and cloakroom charges have been exempted from GST. Also, no GST will be levied on services provided like battery-operated vehicles and intra-railway services.
6. The maximum pre-deposit amount for filing an appeal has been reduced to ₹20 crore for both CGST and SGST.
