Chartered Accountant
Company Secretary
The GST Council has introduced key changes to the Goods and Services Tax (GST) framework, impacting businesses and taxpayers. These updates aim to simplify compliance and streamline tax regulations.
Gift vouchers are now exempt from GST, providing relief to businesses and consumers. The decision aligns with the Reserve Bank of India (RBI) classification, treating vouchers as prepaid instruments rather than goods or services. This clarification eliminates confusion and reduces compliance burdens for retailers.
A revised GST rate of 18% will now apply to the sale of pre-owned vehicles by registered companies and dealers under the margin scheme. This increase from the earlier 12% is expected to ensure fair taxation practices. However, sales between individuals remain unaffected, keeping personal transactions tax-free.
To support small and medium enterprises (SMEs), the government plans to introduce a simplified GST registration process. This step aims to ease compliance, reduce paperwork, and promote formalization of businesses in the MSME sector.
Source: These updates were highlighted in recent GST Council meetings and covered by leading business news platforms such as The Economic Times and Business Standard.
