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Nine Navratri Days, Nine GST Recommendations

CA Umesh Sharma , Last updated: 11 October 2023  
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Arjun (Fictional Character): Krishna, as we stand on the threshold of Navratri, the festival that spans over 9 days, each with its distinct importance, I can't help but think of the 9 major recommendations brought forward by the GST Council. How can we comprehend these recommendations in light of the Navratri festival?

Krishna (Fictional Character): Arjuna, I'm impressed by the way you're linking our festivals with the rules of governance. Navratri, a period of joy, reflection, and festivity, captures the many facets of life and our spiritual journey. In the same vein, these 9 key recommendations from the GST Council touch upon different aspects of the tax domain, aiming to make things clearer, friendlier, and more streamlined for taxpayers. Just as each 9 days of Navratri celebrates a different avatar of the Goddess, similarly each of the 9 key GST recommendations carries its own importance in the tax narrative.

Arjun (Fictional Character): It’s fascinating, Krishna! How the vibrancy and diversity of our festivals can be mirrored in administrative recommendations. Can you explain these 9 recommendations and their implications?

Nine Navratri Days, Nine GST Recommendations

Krishna (Fictional Character): Absolutely, Arjuna. Drawing from the spirit of 9 days of Navratri, where each day is a step towards enlightenment and prosperity, here are the 9 pivotal recommendations of the GST Council:

  1. Appeal Extension and Pre-Deposit Increase: The GST Council decides to extend the deadline for appeals to January 2024 in case where appeal could not be filed by the taxpayers within the allowable time period, though the required pre-deposit sees a 2.5% rise.
  2. Millets Taxation: GST Council decides to exempt GST on flour containing 70% of millet. The Council also reduced GST to 5% from 18% millets flour preparation on branded and pre-packaged and labelled products.
  3. GST Tribunal: The maximum age for the Tribunal's President has been increased to 70 years from 67 years and members to 67 years from 65 years. The minimum age for president and members to be 50 years.
  4. IGST Exemption for Coastal Runs: Foreign vessels operating in India's coastal regions are granted an IGST exemption. The existing IGST is 5%.
  5. Molasses Rate: The tax rate on molasses is decreased to 5% from 28%.
  6. Corporate Guarantee Taxation: No GST on corporate guarantee given by director of a company. However, a company providing a guarantee to its subsidiary will incur a tax on 1% of the sum guaranteed.
  7. Tax on ENA: GST Council decides the right to tax extra neutral alcohol (ENA) to states, with the GST on ENA for industrial use set at 18%.
  8. Services Provided to Governmental Authorities: GST Council has also recommended to exempt services of water supply, public health, sanitation conservancy, solid waste management and slum improvement and upgradation supplied to Governmental Authorities.
  9. Services by Railways: Supply of all goods and services by Indian railways will now be subject to forward charge, to enable them to avail ITC. This will reduce the cost of Indian railways.
 

These are the recommendations given by GST council. Please wait for the final Notification.

Arjun (Fictional Character): Krishna, What one should learn from this?

 

Krishna (Fictional Character): Arjuna, just as Navratri is not merely about dance and festivity but is also a spiritual journey towards self-realization, these recommendations are not just rules but pathways towards a more efficient and transparent tax system. What one should learn is the essence of adaptability and understanding. Change is inevitable, whether it's in our traditions, festivals, or the administrative realm. Embrace these recommendations, stay informed, and adapt to them. Just as Navratri prepares us for new beginnings, these recommendations pave the way for a smoother financial journey ahead.

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CA Umesh Sharma
(Partner)
Category GST   Report

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