GST Council fixes monetary limit for filing of appeals before various legal forums

In order to reduce government litigations, Union Finance Minister Nirmala Sitharaman on Saturday (June 22) said the GST Council has fixed a monetary limit for filing appeals by the tax department before the various appellate authorities.

It has recommended a monetary limit of Rs 20 lakh for GST Appellate Tribunal, Rs 1 crore for the High Court and Rs 2 crore for the Supreme Court for filing of appeals by the department before these legal forums, she said after the 53rd GST Council meeting held in New Delhi.

The Tax Authority would generally not go for an appeal if the monetary limit is less than the prescribed by the GST Council.

The Council has also recommended that the maximum amount for pre-deposit for filing appeal before the appellate authority be reduced from Rs 25 crore CGST and Rs 25 crore SGST to Rs 20 crore CGST and Rs 20 crore SGST, she said.

The Finance Minister also informed that services provided by the Indian railways like sale of platform tickets, facility of retiring rooms, waiting rooms, are exempted from GST.

Additionally, she said, the Council has exempted services by way of hostel accommodation outside educational institutions to tune Rs 20,000 per person per month.

It is meant for students or working class and exemption can be availed only if the stay is up to 90 days, she said.

GST on carton boxes slashed

The GST Council meeting also recommended the reduction of Goods and Service Tax (GST) on all kinds of carton boxes from 18 per cent to 12 per cent.

Himachal Pradesh has been persistently pleading for the reduction of GST on apple carton boxes and this reduction will help both horticulturists and the industry in saving costs, a statement issued here said.

Industries Minister Harshwardhan Chauhan, representing the state, thanked the council for taking the decision unanimously on the proposal of the state. He said that the decision would also help the industry reduce working capital costs.

The Council took a number of decisions to ease the compliance burden and grievances of small and medium taxpayers.

Move to exempt fertilisers

Andhra Pradesh Finance Minister P Keshav on Saturday said the GST Council has referred a recommendation on exempting the fertiliser sector from the current 5 per cent GST to the Group of Ministers on rate rationalisation.

The council discussed the recommendations made by the Standing Committee on Chemicals and Fertilisers in February to reduce GST on nutrients and raw materials in the interest of fertiliser manufacturing companies and farmers.

Currently, GST at a 5 per cent rate is charged on fertilisers, while raw materials like Sulphuric Acid and Ammonia face a higher GST at 18 per cent.

(With agency inputs)