Summary of 53rd GST Council Meeting Recommendations

53rd  GST Council meeting taken place on 22 June 2024  and committee has made various recommendations, for better compliance of GST provision.

Total recommendations can be categorized in 3 categories.

I) Recommendations relating to GST rates on Goods .

II) Recommendations relating to GST rates on services.

III) Measures for Facilitation of Trade

Summery of the above mentioned recommendations is as below,

I)  Recommendations relating to GST rates on Goods

a. Changes in GST rates of goods:

1. 5% IGST on imports of parts, components, testing equipment, tools, and tool-kits of aircrafts.
2. 12% GST on all milk cans (steel, iron, aluminium).
3. Reduced GST from 18% to 12% on cartons, boxes, and cases of both corrugated and non-corrugated paper or paper-board.
4. 12% GST on all solar cookers.
5. 12% GST on poultry keeping machinery parts.
6. 12% GST on all types of sprinklers, including fire water sprinklers.
7. Extended IGST exemption on imports of specified items for defence forces until June 30, 2029.
8. Extended IGST exemption on imports of research equipment for the RAMA programme.
9. Compensation Cess exemption on imports in SEZ by SEZ units/developers from July 1, 2017.
10. Compensation cess exemption on aerated beverages and energy drinks supplied to Ministry of Defence canteens.
11. Adhoc IGST exemption on imports of technical documentation for AK-203 rifle kits for Indian Defence forces.

b. Other Miscellaneous Changes:

1. Compensation cess exemption on supply of aerated beverages and energy drinks to Ministry of Defence canteens.
2. Adhoc IGST exemption on imports of technical documentation for AK-203 rifle kits for Indian Defence forces.

II) Recommendations relating to GST rates on services

1. Exemption for Indian Railways services to the public and intra-railway transactions, retroactive from October 20, 2023.
2. Exemption for services provided by Special Purpose Vehicles (SPV) to Indian Railways for infrastructure use and maintenance services, retroactive from July 1, 2017.
3. Accommodation services exemption for supply value up to Rs. 20,000 per month per person for a minimum period of 90 days, with similar benefit for past cases.
4. Clarification on co-insurance and reinsurance services as no supply under Schedule III of the CGST Act, 2017.
5. GST exemption for RERA collections and other clarifications on input tax credit, place of supply, and time of supply for various services.

III Measures for Facilitation of Trade

1. Section 128A insertion in CGST Act for conditional waiver of interest or penalty for demands raised under Section 73 for FY 2017-18 to FY 2019-20.
2. Monetary limits for government appeals to reduce litigation: Rs. 20 lakhs (GSTAT), Rs. 1 crore (High Court), and Rs. 2 crores (Supreme Court).
3. Reduced pre-deposit amounts for appeals under GST.
4. GST exemption on Extra Neutral Alcohol used for manufacturing alcoholic liquor for human consumption.
5. Reduced TCS rate for ECOs from 1% to 0.5%.
6. Extended period for filing appeals in GST Appellate Tribunal.
7. Relaxed conditions under section 16(4) of the CGST Act for initial GST implementation years and cases of return filing after revocation.
8. Extended due date for FORM GSTR-4 for composition taxpayers from April 30 to June 30 for the FY 2024-25 onwards.
9. Amended Rule 88B of CGST Rules for interest calculation on delayed returns.
10. Insertion of Section 11A in CGST Act to regularize non-levy or short levy of GST due to general practice.
11. Mechanism for refund of additional IGST on upward revision in export prices.
12. Clarifications on various GST issues including valuation of services, input tax credit availability, place of supply, and taxability of certain transactions.
13. Transitional credit provision for invoices before the GST appointed date.
14. Optional facility FORM GSTR-1A to amend or add details in FORM GSTR-1 before filing FORM GSTR-3B.
15. Exemption of annual return filing in FORM GSTR-9/9A for FY 2023-24 for turnover up to Rs. 2 crores.
16. Amendment in Section 122(1B) of CGST Act regarding penal provisions for e-commerce operators.
17. Amendment in rule 142 of CGST Rules for adjustment mechanism of paid amounts against pre-deposit for filing appeal.
18. All-India roll-out of biometric-based Aadhaar authentication for GST registration.
19. Common time limit for demand notices under Sections 73 and 74 of CGST Act.
20. Sunset clause for anti-profiteering cases under GST from April 1, 2025.
21. Restriction on refund of IGST for goods subject to export duty.
22. Reduced threshold for B2C inter-State supplies reporting from Rs. 2.5 lakhs to Rs. 1 lakh.
23. Mandatory monthly filing of FORM GSTR-7 for tax deductors, with no late fee for Nil returns.

Conclusion

The 53rd GST Council meeting’s recommendations reflect a concerted effort to simplify compliance, rationalize tax rates, and foster trade facilitation in India. These measures are poised to have a profound impact on businesses across sectors, promoting economic growth and ease of doing business.