After the formation of the NDA government in India, the first GST Council meeting was held on 22nd June, 2024 in New Delhi. The GST Council meetings are highly anticipated as they discuss the potential rate changes on GST and modifications to the law as such.

The current GST Council meeting was chaired by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers. The meeting focused on tax amendments, Aadhaar biometric integration, and exemptions in railway services. 

Related Read: What is GST and How Does It Work?

53rd GST Council Meeting Highlights

As per press information bureau, we have highlighted the key takeaways from the 53rd GST council meeting.

1. GST Council on Railway Services

The 53rd GST Council Meeting made recommendations that a few services offered by the Indian Railways be exempt for the benefit of common man and for intra-rail services.

The services include: 

  • Platform ticket sale
  • Retiring room facility
  • Waiting rooms
  • Cloakroom facilities
  • Battery-operated car services
  • Intra-rail transactions

2. GST Exempted on Hostel Accommodation

GST rates are exempted for students and working professionals paying INR 20,000 per month for hostel accommodation outside educational institutions. This exemption applies only if the student or professional stays in the hostel for up to 90 days.

3. Uniform 12% GST on Milk Cans

The GST Council also recommended a uniform 12 % GST rate on all milk cans, regardless of their material such as steel, iron, or aluminium.

4. Reduction of GST on Carton Boxes

The 53rd GST Council recommended a reduction in the GST on cartons, boxes and cases of both corrugated and non-corrugated paper or paper-board. It recommended that the rate be reduced from 18% to 12%. 

5. Uniform GST on Solar Cookers

A flat rate of 12 % GST to be applied on all solar cookers whether single or dual energy. 

6. Uniform GST on Sprinklers

The GST Council has recommended a uniform 12% GST to be levied on all types of sprinklers, including both fire and water sprinklers.

7. GST Exemption for Extra Neutral Alcohol (ENA)

The GST Council recommended amending the CGST Act, 2017 to exempt ENA used in the production of alcoholic liquor for human consumption.

8. GST for Petrol and Diesel

During a press conference after the 53rd GST Council meeting, Union Finance Minister Nirmala Sitharaman said that the intent of the central government is to bring petrol and diesel under the GST. However, she clarified that it’s up to the states to decide on whether petrol and diesel has to be brought under GST. Petrol, diesel, natural gas, and ATF are not included under GST. Instead, these fuels are taxed through VAT (Value-Added Tax), central excise duty, and central sales tax.

Note: She also stated that no discussions were made on petrol and diesel being brought under GST during the meeting

9. Waiver in Interest on Penalties for Tax Notice

The GST Council recommended interest and penalties for demand notices issued under Section 73 of the CGST Act be waived off for taxpayers who are not involved in any fraud, suppression, or wilful misstatements for the financial years of 2017-18, 2018-19, and 2019-20, if the full tax demanded is paid upto 31.03.2025.

10. Input Tax Credit

The GST Council has recommended extending the deadline for availing input tax credit (ITC) on any invoice or debit note under Section 16(4) of the CGST Act. This extension applies to any GSTR 3B return filed for the financial years 2017-18, 2018-19, 2019-20, and 2020-21, with the new deadline deemed to be 30.11.2021. To facilitate this extension, the Council also recommended a retrospective amendment to Section 16(4) of the CGST Act, effective from 01.07.2017.

11. New Monetary Limits for Filing Appeals

To reduce government litigation, the GST Council recommended the monetary thresholds for filing appeals by the department in various courts. 

The thresholds are:

  • The monetary limit of Rs. 20 lakh for GST Appellate Tribunal
  • The monetary limit of Rs. 1 crore for High Court 
  • The monetary limit of Rs. 2 crore for the Supreme Court

12. GST Return

To alleviate taxpayers’ interest burden, the GST Council recommends waiving interest under Section 50 of the CGST Act for late return filings, provided the amount due was available in the Electronic Cash Ledger (ECL) by the original due date.

Read More About: Types of GST Returns and their Due Dates

13. GST on SEZ

The GST Council proposes exempting SEZ units and developers from paying the Compensation Cess on imports for authorized operations, effective from July 1, 2017.

14. Reduction of Pre-deposit Required to be Paid for Filing of Appeals Under GST

To ease cash flow and working capital blockage, the Union Finance Minister proposed an amendment to Section 107 and Section 112 of CGST Act to reduce the amount of pre-deposit required to be paid for filing of appeals under GST. 

15. Biometric-based Aadhaar Authentication

The GST Council has proposed implementing biometric-based Aadhaar authentication for registration applicants across India in a phased approach. This initiative aims to enhance the GST registration process and curb fraudulent input tax credit (ITC) claims made using fake invoices.

16. Sunset Clause for Anti-profiteering Under GST

The GST Council has recommended a sunset clause from April 1st, 2025 for receipt of any new application for anti-profiteering.

53rd GST Council Meeting Press Release

Get the full press release from the Finance Ministry about the 53rd GST Council meeting on June 22nd, 2024

Download Now: 53rd GST council meeting press release pdf

Changes in GST Rates for Goods after 53rd GST Council Meeting

Here is the list of goods that has the revised GST rate as per 53rd GST Council Meeting on June 2024.

List of Goods

New GST Rates As Per June 2024

Aircraft parts, components, testing equipment, tools, and toolkits. 5%
Parts of Poultry Keeping Machinery 12%
Extra Neutral Alcohol used for human consumption 12%
IGST on imports of specified items for defense forces Exempt
IGST on imports of research equipment and buoys under RAMA Exempt
All types of milk cans regardless of the use 12%
All types of carton boxes and cases 12%
All types of sprinklers 12%
All types of solar cookers 12%
Supply of aerated beverages and energy drinks to authorized customers by Unit Run Canteens under Ministry of Defence Compensation Cess is exempt
Imports in SEZ by SEZ Unit/developers for authorized operations Compensation Cess is exempt
IGST on Imports of technical documentation for AK-203 rifle kits for Indian Defence forces. Exempt

 

Read About: List of Goods and Service Tax (GST) Rates, Slabs and Revision

Changes in GST Rates for Services after 53rd GST Council Meeting

Here is the list of services that has the revised GST rate as per 53rd GST Council Meeting on June 2024

List of Services

New GST Rates as of June 2024

Services provided by Indian Railways to the general public, namely, sale of platform tickets, facility of retiring rooms/waiting rooms, cloak room services and battery-operated car services. Exempt
Services provided by Special Purpose Vehicles (SPV) to Indian Railways Exempt
Outside Hostel Accommodation Service for Students and Working Professionals under certain conditions. Exempt

 

Other Changes Related to Services

  • Co-insurance premiums between lead insurer and co-insurer declared as non-supply under Schedule III of CGST Act. Regularize past cases.
  • Declare ceding commission/re-insurance commission as non-supply under Schedule III of CGST Act. Regularize past cases.
  • Regularize GST liability on reinsurance services for specified insurance schemes from 01.07.2017 to specified dates.
  • Clarify that retrocession qualifies as re-insurance of re-insurance under Sl. No. 36A of notification No. 12/2017-CTR.
  • Clarify GST exemption for statutory collections by Real Estate Regulatory Authority (RERA) under entry 4 of Notification No. 12/2017-CTR.
  • Clarify non-taxability of further sharing of incentives under specific RuPay Debit Cards and BHIM-UPI schemes, defined by NPCI in consultation with participating banks.

Changes in Measures for facilitation of trade

1. Reduction in TCS Rates by e-commerce Operators (ECOs):

Reduce Tax Collected at Source (TCS) rates from 1% to 0.5% to alleviate financial burden on suppliers using e-commerce platforms.

2. Extension of GSTR-4 Filing Deadline:

Extend the deadline for filing FORM GSTR-4 for composition taxpayers from 30th April to 30th June starting from FY 2024-25.

3. Amendment in Rule 88B of CGST Rules:

Amend Rule 88B to exclude amounts in Electronic Cash Ledger from interest calculation under Section 50 of the CGST Act for delayed returns.

4. Insertion of Section 11A in CGST Act:

Introduce Section 11A to regularize instances of non-levy or short levy of GST due to common trade practices, based on Council recommendations.

5. Refund Mechanism for Additional IGST on Export Revisions:

Establish a mechanism for claiming refunds of additional IGST paid on revised export prices, supporting exporters in managing financial flows.

6. Various Clarifications on GST Issues:

Provide clarity on several GST issues such as input tax credit, valuation, and place of supply, aiming to reduce disputes and ensure compliance.

7. Transitional Credit for Input Services:

Amend Section 140(7) of the CGST Act to allow transitional credit for input services received before the appointed date by Input Service Distributors.

8. Introduction of FORM GSTR-1A for Amending Details:

Introduce FORM GSTR-1A to enable taxpayers to correct or add supply details before filing FORM GSTR-3B, ensuring accurate tax liability reporting.

9. Exemption from Annual Return Filing for Small Taxpayers:

Exempt small taxpayers with turnover up to two crore rupees from filing annual return in FORM GSTR-9/9A for FY 2023-24.

10. Clarification on Penal Provisions for e-commerce Operators:

Clarify that penal provisions under Section 122(1B) of the CGST Act apply only to e-commerce operators collecting tax under Section 52, not others.

11. Uniform Time Limit for GST Demand Notices:

Implement a uniform time frame for issuing demand notices and orders under Sections 73, 74, and 74A of the CGST Act from FY 2024-25, simplifying compliance.

12. Amendments to Restrict IGST Refunds on Export Duties:

Amend Sections 16 of IGST Act and 54 of CGST Act to restrict IGST refunds on goods subject to export duties, ensuring uniform treatment.

13. Threshold Reduction for B2C Inter-state Supplies:

Lower threshold for reporting B2C inter-state supplies invoice-wise in FORM GSTR-1 from Rs. 2.5 lakh to Rs. 1 lakh, enhancing reporting efficiency.

14. Monthly Filing Requirement for GSTR-7 and Invoice Details:

Require monthly filing of FORM GSTR-7 for TDS under Section 51 of CGST Act, with no late fee for Nil returns, and mandate invoice-wise details.

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