Highlights from 53rd GST Council Meeting: What you should know

Union Finance Minister Nirmala Sitharaman chairs the 53rd GST Council meeting, in New Delhi, on June 22, 2024. (PTI Photo)

The 53rd meeting of the Goods and Services Tax (GST) Council was held on June 22 in New Delhi. Several recommendations were made at the meet to refine tax rates and service exemptions under the GST regime. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, deliberated on various proposals to streamline GST applicability across goods and services.

Here are the key highlights:

Changes in GST rates of Goods:

1. Aircraft Parts and Tools: 5% IGST on imports of parts, components, testing equipment, tools, and tool-kits of aircrafts.
2. Milk Cans: 12% GST on all steel, iron, and aluminium milk cans.
3. Carton Boxes: GST on cartons, boxes, and cases of paper reduced from 18% to 12%.
4. Solar Cookers: 12% GST on all solar cookers.
5. Poultry Machinery Parts: 12% GST on parts of poultry keeping machinery.
6. Sprinklers: 12% GST on all types of sprinklers, including fire water sprinklers.
7. Defence Imports: IGST exemption on specified defence items extended until 30th June, 2029.
8. RAMA Programme Imports: IGST exemption on research equipment/buoys under RAMA programme.
9. SEZ Imports: Compensation Cess exemption on imports by SEZ units/developers since 01.07.2017.

Other Goods-related changes:

Additional changes included exemptions on supply of aerated beverages and energy drinks to unit-run canteens under the Ministry of Defence, and ad hoc IGST exemptions on technical documentation for AK-203 rifle kits imported for Indian Defence forces.

Service exemptions:

The council also proposed critical adjustments concerning services.

• Certain Indian Railways services and intra-railway supplies have been exempted, such as services like platform tickets, retiring rooms, cloak rooms, battery-operated car services, and intra-railway transactions.
• Accommodation Services: Accommodation services exemptions for relief to students and working professionals. Accommodation up to Rs 20,000/month per person for stays of 90+ days have been exempted.
• SPV Services: SPV services to Indian Railway and maintenance services provided by Indian Railways to SPVs have been exempted.

Other recommendations:

Interest and Penalties:

• Waive interest and penalties for Section 73 demand notices for FY 2017-18, 2018-19, 2019-20 if full tax is paid by 31.03.2025.

Input Tax Credit (ITC):

• Time limit for ITC on invoices/debit notes under Section 16(4) for FY 2017-18 to 2020-21 deemed as 30.11.2021 for returns filed by this date.

Litigation Reduction:

• Monetary limits for department appeals: Rs 20 lakh (GST Appellate Tribunal), Rs 1 crore (High Court), Rs 2 crore (Supreme Court).

Pre-Deposit for Appeals:
• Reduce quantum of pre-deposit for filing GST appeals.

Appeal Filing Period:

• Amend CGST Act to start the three-month period for GST Appellate Tribunal appeals from a notified date.

Interest Burden:

• No interest on delayed return filing if amount is available in Electronic Cash Ledger on the due date.

Anti-Profiteering:

• Sunset clause from April 1, 2025, for new Anti-profiteering applications.