- Key GST Rate Updates: The Council announced significant GST rate changes, including a reduction to 5% for Fortified Rice Kernel (FRK), exemption for gene therapy, and IGST exemptions for defense and atomic energy imports. Additionally, certain used vehicles will be taxed at 18% only on the supplier’s profit margin, and food for welfare programs will maintain a concessional 5% rate.
- Simplified Compliance Measures: To ease GST compliance, the Council reduced the pre-deposit for appeal penalties to 10%, waived late fees for annual returns filed by March 31, 2025, and introduced new invoice management systems to streamline tax reconciliation processes.
- Legal and Structural Changes: The meeting established clearer definitions in the CGST Act, allowed unregistered entities to make payments with temporary identification numbers, and extended deadlines for IGST settlements and restructuring GST compensation until June 30, 2025, while also planning a natural disaster levy policy.
Source: rmpsco.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
