The 53rd GST Council Meeting was held on 22nd June in Delhi. This meeting took place after the pre-Union Budget, 2024 discussions. Further, the chairperson of this meeting was Ms. Nirmala Sitharaman, and various other members of the Council were part of this meeting.
53rd GST Council Meeting: Key Highlights
Changes in GST Rates on Goods
Uniform GST Rates for Aircraft Parts
The 53rd GST Council recommends that there should be uniform GST rates for aircrafts parts. Accordingly, a uniform rate of 5% IGST will be applicable on x imports of ‘Parts, components, testing equipment, tools and toolkits of aircraft. The purpose of this move is to encourage Maintenance, Repair and Overhaul activities.
GST on Milk Cans
GST on milk cans will attract GST @12%. This is regardless of the type of milk can and the purpose of using it. Therefore, all the milk cans made of steel, aluminum or iron will attract GST @12%.
Reduction of GST Rates on Carton Boxes
GST rate on ‘carton, boxes and cases of both corrugated and non-corrugated paper or paperboard’ (HS 4819 10; 4819 20) to be reduced from 18% to 12%.
GST on Solar Cookers
All solar cookers will now attract GST @12%. This is irrespective of whether the solar cooker has single or dual energy force.
Clarification on GST on Poultry
The GST entry Poultry keeping Machinery attracting 12% GST to specifically incorporate “parts of Poultry keeping Machinery”. Having said this, this move is solely for the purpose of interpretational issues.
GST on Sprinklers
In order to ease past practices and regularise the interpretational issues, the sprinklers including fire water sprinklers will attract GST @12%.
Extension of IGST Exemption for Defense Forces
The 53rd GST Council further recommends extending IGST exemption on imports of specified items for defense forces for a further period of five years till 30th June 2029.
Changes in GST on Services
GST on services by Indian Railways
The 53rd GST Council Meeting recommends the exemptions oof GST from the following services by Indian Railways to public:
– Sale of platform tickets,
– Facility of retiring rooms/waiting rooms, cloak room services and
– Battery-operated car services.
Further, the issue for the past period will be regularized from 20.10.2023 to the date of issue of exemption notification in this regard.
GST on Services by Special Purpose Vehicles to Indian Railways
The Council further recommends exempting GST on the services by Special Purpose Vehicles (SPV) to Indian Railway by way of allowing Indian Railway to use infrastructure built & owned by SPV during the concession period and maintenance services supplied by Indian Railways to SPV. The issue for the past will be regularized on ‘as is where is’ basis for the period from 01.07.2017 till the date of issue of exemption notification in this regard.
Exemption for Accommodation Services
There will be creation of a new entry in notification No. 12/2017- CTR 28.06.2017 under heading 9963. This heading related to exemption of accommodation services having value of supply of accommodation up to Rs. 20,000/- per month per person subject to the condition that the accommodation service is supplied for a minimum continuous period of 90 days (about 3 months). To extend similar benefits for past cases.
GST on Co-Insurance Premiums and Commissions
Co-insurance premium apportioned by lead insurer to the co-insurer for the supply of insurance service by lead and co-insurer to the insured in coinsurance agreements, may be declared as no supply. Further, there will also be regularization of past cases ‘as is where is’ basis.
In addition to this, transaction of ceding commission/re-insurance commission between insurer and re-insurer will also come under no supply.
GST on Statutory Collection by RERA
In addition to the above changes in the services, the GST Council recommends that there should be no GST on statutory collection by RERA.
Ease of GST Compliances
Changes in GSTR-1
The GST Council has made recommendations to implement for a new form GSTR-1A. This new form will allow taxpayers to make additions or amendments in the particulars of GSTR-1 for the current period/IFF for 1st and 2nd month of quarter (that is missed out before filing GSTR-3B)
Threshold limit for reporting B2C Interstate Supplies
There is a reduction of threshold limit for reporting Business-to-Consumer (B2C) supplies invoice wise in Table 5 of GSTR-1. The limit is not Rs. 1 lac from Rs. 2.5 lacs.
Extension for filing of GSTR-4
There is an extension for filing of GSTR-4 by the Composition Taxable Persons. The last date to file GSTR-4 from FY 2024-25 is now 30th June 2024. Earlier, this date was 30th April 2024.
TCS Rate Reduction
The GST Council recommends reducing the TCS rate for Electronic Commerce Operators from 1% to 0.5% on net taxable supplies.
Compulsory Filing of GSTR-7
The GST Council further recommends mandatorily filing GSTR-7 even if there is no deduction of TDS. Apart from this, there will be no late fees for filing nil GSTR-7.
Non-filing of GSTR-9/9A
In addition to the above, the GST Council recommends that for taxpayers having an aggregate annual turnover of up to Rs. 2 crores will not have to file GSTR-9/9A for the FY 2023-24.
Monetary limits for GST Appeals
The GST Council has made the following monetary limit recommendations for filing GST appeals by the department before the legal forum are:
Legal Forum | Monetary Limit |
GST Appellate Tribunal | Rs. 20 lacs |
High Court | Rs. 1 crore |
Supreme Court | Rs. 2 crores |
Time limit to file appeals before the GSTAT
Lastly, the GST Council recommends providing 3 months’ time for filing appeals before the GST Appellate Tribunal. It will start from a date yet to be notified by the Government, most likely to be announced by 5th August 2024 as this is the last date.