GSTR 4 filing deadline extended to June 30; key decisions from GST Council meeting

In the first GST Council meeting after the 2024 Lok Sabha elections and the formation of the new government, several significant decisions were announced on Saturday (June 22, 2024). Union Finance Minister Nirmala Sitharaman revealed key outcomes, including an extension of the GSTR 4 filing deadline and adjustments in GST rates on various items.

GSTR 4 Filing Deadline Extended

The GST Council has extended the deadline for filing GSTR 4 to June 30. This extension aims to benefit small taxpayers. Additionally, a waiver of interest and penalty on demand notices issued under Section 73 of the GST Act for the financial years 2017-18, 2018-19, and 2019-20 was recommended, provided these notices are not related to fraud, suppression, or misrepresentation. A new form, GSTR 1 A, will also be introduced to facilitate changes in GSTR 1.

New GST Rates on Milk Cans, Sprinklers, and Cartons

The Council has recommended a uniform GST rate of 12 per cent on milk cartons and a similar rate on sprinklers and solar cookers. This decision is expected to benefit apple producers in Himachal Pradesh and Jammu and Kashmir. The implementation of biometric Aadhaar-based registration across the country will follow a phased approach after the success of a pilot project.

Exemption on hostel services and relief for highway construction companies

Hostel services provided outside educational institutions will enjoy a GST exemption of up to Rs 20,000 per person per month. For stays exceeding three months, no GST will be applied. Highway construction companies will now pay GST based on actual payments received rather than annually. 

Clarification on GST notices

Finance Minister Sitharaman addressed concerns about the issuance of GST notices. She clarified that the Central GST department has sent notices to only 1.96% of taxpayers, totaling around 114,000 notices, whereas state GST departments have issued over 1.4 million notices. This clarification aims to dispel allegations against the central government regarding excessive GST notices.

Future agenda and appointments

The Finance Minister noted that online gaming was not discussed in this meeting, with certain agenda points deferred to the next meeting, scheduled for mid-August. Additionally, Bihar's Deputy Chief Minister Samrat Choudhary has been appointed as the chairman of the rate rationalisation committee.

These decisions are part of the GST Council's efforts to streamline processes, provide relief to various sectors, and reduce litigation related to GST.

Railway services and Highway construction companies

Railway services will be excluded from the GST purview, and GST on railway platform tickets will be removed, providing relief to travelers. Highway construction companies will now pay GST upon receipt of actual payment instead of annually.

Relief Measures and Litigation Reduction

Relief was announced on GST demands for FY18, FY19, and FY20, where penalties and interest will be waived if no fraud is detected. Steps have been taken to reduce litigation, including setting a monetary limit of ₹20 lakh for appeals in the GST Tribunal. Limits for appeals to higher courts are set at ₹1 crore for the High Court and Rs 2 crore for the Supreme Court.