The GST Council has set a cap on the amount of money for which appeals can be filed in different legal forums.

Govt. aims to decrease legal disputes by setting monetary limits for filing appeals by tax department before appellate authorities, says Finance Minister.

June 22nd 2024.

The GST Council has set a cap on the amount of money for which appeals can be filed in different legal forums.
New Delhi: On Saturday, Union Finance Minister Nirmala Sitharaman announced a new measure to reduce government litigations. The GST Council, during its 53rd meeting in New Delhi, has set a monetary limit for tax department appeals to the various appellate authorities.

Under this new recommendation, appeals by the department can be filed up to Rs 20 lakh before the GST Appellate Tribunal, Rs 1 crore before the High Court, and Rs 2 crore before the Supreme Court. This limit is an effort to streamline the appeal process and reduce unnecessary litigations.

In addition, the Council has also suggested a reduction in the maximum amount for pre-deposit required for filing an appeal before the appellate authorities. The earlier limit of Rs 25 crore for both CGST and SGST has been lowered to Rs 20 crore each.

According to the Finance Minister, these changes will discourage the tax authority from filing appeals for smaller amounts, which can now be resolved at lower legal forums. This will not only save time and resources but also help in reducing the burden on higher courts.

During the meeting, Sitharaman also announced that certain services provided by the Indian railways, such as the sale of platform tickets and the use of retiring rooms and waiting rooms, will now be exempt from GST. This move will provide relief to the common people who use these services on a regular basis.

Furthermore, the Council has decided to exempt services by way of hostel accommodation outside educational institutions up to Rs 20,000 per person per month. This will benefit students and individuals who rely on such accommodations for their studies or work.

Overall, the decisions taken by the GST Council are aimed at simplifying the tax system and reducing unnecessary legal complications. These measures will not only benefit the taxpayers but also contribute to the smooth functioning of the economy.

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