The 53rd GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, convened on June 22 in New Delhi. It focused on refining tax rates and adjusting service exemptions within the GST framework, aiming to optimise and streamline the tax structure across various goods and services.
Content Id:
- GST Council Meeting
- Key Announcements Of GST Council Meet
- GST Council Meet Discussed Exemptions
- Service Exemptions
- Other Goods-Related Changes From The GST Council Meeting
- GST Council Meet Discussed Other Recommendations
- GST Council Meet – Quick Summary
- GST Council Meeting 2024 – Faqs
GST Council Meeting
The 53rd GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, was convened on June 22 in New Delhi to deliberate on refining GST rates and exemptions. The council reviewed various proposals affecting the tax structure for numerous goods and services.
During the session, significant changes were proposed, including adjustments to GST rates on goods such as aircraft parts, milk cans, and solar cookers, with most seeing a shift to either streamline the tax application or promote certain industries. Additionally, exemptions were extended for vital imports like defense items and research equipment, supporting sectors crucial to national interests.
On the services front, the council made strides in reducing the financial burden on various sectors by exempting specific services from GST. These include accommodations for students and Indian Railways’ intra-service transactions. This approach not only aids specific groups but also fosters a more accessible service sector under the GST framework.
Key Announcements Of GST Council Meet
Here are the key announcements from the GST Council meeting:
- Uniform GST on Solar Cookers: The council recommended a 12% GST rate for all solar cookers, regardless of whether they have a single or dual energy source.
- GST Exemptions for Indian Railways: Services provided by Indian Railways, including the sale of platform tickets, use of retiring rooms, waiting rooms, cloakroom services, and battery-operated car services, are exempted from GST. Intra-railway supplies are also exempted.
- Exemption for Student Hostels: Accommodation services provided by hostels outside of educational institutions are exempt from GST if the value of supply is up to Rs 20,000 per month per person, provided the services are for a continuous period of at least 90 days.
- Uniform Rate for Milk Cans: A uniform GST rate of 12% is recommended for all milk cans, whether made of steel, iron, or aluminum, to avoid disputes regardless of their use.
- Reduced GST on Carton Boxes: GST on all types of carton boxes, both corrugated and non-corrugated paper or paper board, has been reduced from 18% to 12%. This change is particularly aimed at benefiting apple growers in Himachal Pradesh, Jammu, and Kashmir.
- Clarification on Sprinklers: It was clarified that all types of sprinklers, including fire water sprinklers, will attract a 12% GST.
- Extended Return Submission Deadline: For small taxpayers, the deadline to furnish details and returns in form GSTR-4 has been extended from April 30 to June 30, starting from the Financial Year 2024-25.
- Monetary Limits for Tax Appeals: To reduce government litigation, the council set monetary limits for filing appeals by the tax department: Rs 20 lakh for the GST Appellate Tribunal, Rs 1 crore for the High Court, and Rs 2 crore for the Supreme Court.
GST Council Meet Discussed Exemptions
The recent GST Council meeting discussed various exemptions aimed at reducing the tax burden on specific sectors and enhancing operational efficiencies. Here are the key exemptions discussed:
- Defence Imports Exemption: IGST exemptions on specific defence items have been extended until June 30, 2029, facilitating cost-effective procurement for defence purposes.
- RAMA Programme Imports: IGST exemptions are provided for importing research equipment and buoys under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme, supporting advanced scientific research.
- SEZ Imports: Compensation Cess on imports by Special Economic Zone (SEZ) units and developers has been exempted since July 1, 2017, promoting investment and operational efficiencies in these zones.
Additional Exemptions for Defence-Related Supplies:
- Exemptions on the supply of aerated beverages and energy drinks to unit-run canteens under the Ministry of Defence, aligning with the canteen’s non-commercial service nature.
- Ad hoc IGST exemptions are granted for technical documentation pertaining to AK-203 rifle kits imported by Indian Defence forces, reducing the cost of essential defence acquisitions.
Service Exemptions
- Indian Railways Exemptions: Certain services provided by Indian Railways, such as platform ticket sales, retiring room services, cloak rooms, and battery-operated car services, along with intra-railway transactions, have been exempted from GST. This aims to ease the tax implications on everyday travel facilitated by the railways.
- Accommodation Services: Exemptions for accommodation services up to Rs 20,000 per month per person for stays exceeding 90 days. This measure is particularly aimed at providing relief to students and working professionals, making long-term accommodation more affordable.
- SPV Services Exemptions: Services to Special Purpose Vehicles (SPVs) by Indian Railways and maintenance services provided by the railways to SPVs have also been exempted, which supports the special projects and collaborations involving the railways.
Other Goods-Related Changes From The GST Council Meeting
The GST Council meeting introduced a key change in the taxation of carton boxes, vital for various packaging needs. Specifically, the Council proposed a reduction of the GST rate on all types of carton boxes from 18% to 12%. This change affects both corrugated and non-corrugated paper or paperboard boxes.
This uniform reduction is designed to simplify the tax structure for these materials. It aims to lessen the financial burden on industries that heavily depend on these boxes for their packaging needs. The adjustment makes it easier for businesses to manage costs and pricing strategies efficiently.
The reduction is particularly advantageous for apple growers in Himachal Pradesh and Jammu and Kashmir. In these regions, carton boxes are crucial for the safe packaging and transportation of apples. Lowering the GST rate will reduce operational costs for these growers, thereby enhancing their competitiveness and profitability in the market.
GST Council Meet Discussed Other Recommendations
The 53rd GST Council meeting discussed a range of recommendations beyond rate adjustments. These included procedural relaxations and clarifications aimed at streamlining compliance and reducing the tax burden on certain sectors. A notable focus was on simplifying procedures for taxpayers and enhancing the ease of doing business.
Key procedural relaxations included extending the time limits for small taxpayers to furnish returns. The new deadline is aimed at providing relief and more preparation time, thereby supporting small businesses in maintaining compliance without undue pressure.
Additionally, the Council addressed government litigation by setting monetary limits for appeals. This initiative is expected to reduce the volume of cases in the judicial system and focus efforts on more significant cases, enhancing the efficiency of tax administration and litigation management.
GST Council Meet – Quick Summary
- The 53rd GST Council meeting, chaired by Finance Minister Nirmala Sitharaman in New Delhi, aimed at refining tax rates and exemptions to enhance the GST framework.
- The GST Council meeting revised GST rates on various items like solar cookers and milk cans, and introduced exemptions for services such as Indian Railways.
- The meeting extended IGST exemptions for defense imports, research equipment, and SEZ imports, and provided specific exemptions for supplies to defense canteens and AK-203 rifle kits.
- Exemptions were approved for several Indian Railways services, accommodation services for students and professionals, and maintenance services provided to Indian Railways.
- The GST on carton boxes was reduced from 18% to 12%, aimed at aiding industries such as apple farming in northern India.
- The council proposed several procedural relaxations for small taxpayers, established monetary limits for tax department appeals, and recommended reducing pre-deposit amounts for GST appeals to streamline the process and reduce litigation.
GST Council Meeting 2024 – Faqs
Under the latest GST updates, items like solar cookers and milk cans will become cheaper with a uniform 12% rate. Meanwhile, exemptions on items such as carton boxes will reduce costs for industries, notably benefiting apple growers in northern regions.
The GST Council reduced rates on several items: carton boxes from 18% to 12%, and solar cookers and milk cans are now uniformly taxed at 12%. This aims to simplify tax structures and benefit specific sectors like agriculture and renewable energy.
The GST Council meeting aims to review and revise the GST structure, ensuring tax rate rationalisation, discussing exemptions, and making policy decisions to enhance operational efficiency and compliance across India. It involves key stakeholders including the finance ministers of the central and state governments.
There are four types of Goods and Services Tax (GST) in India: Central GST (CGST) levied by the central government, State GST (SGST) by state governments, Integrated GST (IGST) on inter-state transactions, and Union Territory GST (UTGST) in Union Territories without legislatures.
