The 53rd GST Council Meeting held on June 22, 2024, was chaired by Union Finance Minister Nirmala Sitharaman, along with State Finance Ministers and officials. The 53rd GST Council meeting press release PDF highlighted several tax reforms, compliance relaxations, and rate changes that would directly impact businesses and consumers in different ways. All the decisions are different from each other but share one unified aim, and that is to simplify the existing tax structure for the people of India.
Before diving into the 53rd GST Council meeting decisions, let’s revisit the basics of GST and the role of the Council. What GST is and how it impacts the Indian economy.
53rd GST Council Meeting — Quick Overview Table
The 53rd GST Council Meeting held on June 22, 2024, brought several important reforms, tax rate changes, and compliance relaxations for taxpayers. Before diving into the highlights, here’s a glance at GST, the Council’s role, and its key functions.
| Particulars | Details |
|---|
| What is GST? | Goods and Services Tax (GST) is a single indirect tax applied on the supply of goods and services, replacing multiple indirect taxes. |
| Types of GST | SGST, CGST, IGST, and UTGST, depending on state, central, inter-state, and UT transactions. |
| When Introduced? | First proposed in 2000, GST was officially implemented in India in 2017 after the passage of the 122nd Constitutional Amendment Bill. |
| Who Governs It? | The GST Council, formed under Article 279A, consists of the Union Finance Minister, State Finance Ministers, and UT representatives. |
| Role of GST Council | Decides tax slabs, reviews exemptions, makes recommendations on compliance rules, and monitors uniformity across states. |
| 53rd GST Council Meeting Date | Held on June 22, 2024, chaired by Finance Minister Nirmala Sitharaman. |
| 53rd GST Council Meeting Notification | Issued with details on Aadhaar-based authentication, GST rate cuts, exemptions, and compliance relaxations. |
| Upcoming Sessions | The 54th GST Council Meeting and 55th GST Council Meeting are expected to continue reforms. Stakeholders are also awaiting the GST Council meeting on the next date for fresh announcements. |
Also Read: No GST On R&D Grants To Educational Institutes
What Is GST?
The Goods and Services Tax, or what the common people know as the GST, is a single indirect tax charged on the supply and purchase of goods and services. GST is a destination-oriented, multi-stage tax levied on every additional value.
The GST was introduced in India in 2000 by then-Prime Minister Atal Bihari Vajpayee. It was concluded that the GST could change and improve the Indian tax structure.
The 53rd GST Council meeting press release highlighted how GST has streamlined taxation by replacing multiple indirect taxes. The central taxes replaced after the implementation of the GST are
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Duties of Excise
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Service Tax
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Central Excise Duties
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Additional Duties of Excise
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Additional Duties of Customs
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Additional Duty on Customs
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Cess and Surcharge
Different Types Of GST
GST is structured into different categories to ensure fair distribution of tax between the Centre and States. Let’s look at the four major types of GST and how each one applies in different transactions.
| Name of the tax | Description |
|---|
| SGST | State Goods and Services Tax, is imposed by the state government on intra-state goods and services transactions. |
| CGST | Central Goods and Services Tax, is imposed by the central government on the intra-state transaction of goods and services. |
| IGST | Integrated Goods and Services Tax, is charged on inter-state transactions of goods and services and is applied to imports and exports. |
| UGST | Union Territory Goods and Services, is levied by the UT and is imposed on all transactions carried out in any UT. |
The 53rd GST Council meeting notification and future updates from the 54th GST Council meeting and 55th GST Council meeting often review these tax structures to ensure smooth implementation.
What Is The GST Council?
In 2016, after the 122nd Amendment Constitutional Bill was passed by both Houses of Parliament, the GST came into force in India.
As per Article 279, the GST Council is made to ensure all the states and UTs are following the rules and regulations, along with making recommendations on all issues related to the GST.
The GST council members are responsible for the rate slabs of GST, or whether it needs any modification on certain products and services.
However, in 2022, the Supreme Court of India said that the recommendation made by the GST Council was not binding. The court stated that, according to Article 246A of the Constitution, both Parliament and the state legislature have simultaneous power to legislate on GST.
The 53rd GST Council meeting notification 16(4) further clarified certain compliance relaxations and highlighted the role of negotiation between the Union and States. Stakeholders now look forward to the GST Council meeting on the next date for additional clarifications.
Also Read: Centre Introduces Biometric ID To Fight GST Fraud In India
GST Rate Changes on Goods — Full List with Before/After Rates
The detailed list of GST rate changes on various goods and services is mentioned below in detail for one's clarity.
1. Aircraft MRO Parts — Uniform 5% IGST
One of the changes introduced in the meeting was concerning the aviation sector. A uniform 5% IGST will be added to parts of the aircraft, testing equipment, and related toolkits used in maintaining and repairing the aircraft. Earlier, a GST of 18% was being levied on aircraft-related components, which burdened the domestic aviation agencies.
2. Solar Cookers, Sprinklers, Hotel Amenities & More
GST on solar cookers will now be reduced from 18% to 12% to encourage people to adopt renewable and clean energy options, instead of non-renewable ones. Along with this, the council also issued classification clarity for items, like fire sprinklers, to avoid doubts regarding GST on such items.
3. Milk Cans — Uniform 12% GST
Now consumers have to pay a uniform GST rate of 12 per cent on all milk cans, regardless of whether the body is made of iron, steel, or aluminium. The step has been taken to standardise the tax treatment of products.
4. Carton Boxes — Reduced from 18% to 12%
The GST tax rate on all forms of carton boxes has been lowered from 18 per cent to 12 per cent. The step is taken to make both consumers and manufacturers benefit by reducing the overall cost of packaging materials.
5. Hostel Accommodation — Exempt up to Rs. 20,000/month
Hostel accommodation services outside all educational institutions were exempted from GST up to Rs 20,000 per person every month. This is to make hostel housing reasonable for non-student residents.
Also Read: 20 Easy Ways to Save Income Tax In 2025
6. Conditional Loans And Central Support To States
The Union Government will aid all states with timely tax devolution, GST compensation settlements, and Finance Commission grants. The Finance Minister underlined the ‘Scheme for Special Assistance to States for Capital Investment’, stating that while most loans are unrestricted, a section remains conditional on states implementing citizen-friendly reforms and capital projects across industries.
Authorities also issued clarification concerning the extra Neutral Alcohol ENA GST exemption, wherein it was made clear that ENA used for creating alcoholic drinks for consumption will be outside the coverage of GST, as it will be covered under the tax provisions established by state government authorities.
GST Rate Changes on Services
The changes in GST on several important services are described below for one's better understanding.
1. Insurance, Co-Insurance & Reinsurance Services
The authorities issued clear clarifications regarding GST on insurance, co-insurance, and re-insurance services to avoid the charging of extra taxes.
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Co-insurance is a type of insurance wherein several insurers share the same amount of risk. The council meeting issued a clarification that, in such insurance policies, as per the co-insurance non-supply Schedule III, GST will only be applied on the premium charged to the policyholder, and the distribution of premium among all insurers will not be treated as a separate supply.
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When it comes to re-insurance services wherein an insurer transfers its risk to another insurer, called the reinsurer, the council said that premium adjustments will not have any additional GST.
2. Indian Railways — Platform Tickets & Intra-Rail Services Exempt
To the relief of consumers, the GST council presented an exemption from GST on platform tickets. The step is to aim to reduce the financial burden on the passengers. The measure is taken to make the railway service more reasonable and affordable for people.
Along with these changes, the authorities also clarified the SEZ compensation cess exemption July 2017. The authorities clarified that the compensation cess levied on supplies for Special Economic Zone developers or units will apply retrospectively from July 1st, 2017, as long as the supplies qualify as zero-rated under the tax guidelines.
Compliance Relaxations & Trade Facilitation Measures
The authorities discussed and made recommendations to provide taxpayers with various relief measures related to various things.
1. Aadhaar Biometric Authentication — National Rollout
“There is going to be a rollout of biometric-based Aadhaar authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in some cases,” announced Finance Minister Nirmala Sitharaman. This will help enhance tax compliance by minimising fraud activities.
2. Section 128A — Interest & Penalty Waiver (FY 2017-18 to 2019-20)
The council meeting also proposed the introduction of Section 128A CGST Act. This provision will waive interest and penalties in some cases wherein tax-related demands were raised under Section 73 of the CGST Act for the year 2017-18 to 2019-20. This will only work if the taxpayer pays the full tax amount within the given deadlines.
3. GSTR-4 Deadline Extended to June 30
To assist small taxpayers, the GST Council proposed extending the deadline for providing details and returns in the GSTR-4 form. The timeline is extended from April 30th to June 30th. The extension will be applicable for returns for the financial year 2024–25 onward. Although this change was also mentioned in the 53rd GST Council meeting notification.
4. GSTR-1A New Optional Amendment Facility
The authorities made a recommendation to introduce a new form named Form GSTR-1A. This form will help the taxpayers in making changes or adding some missing details in their outward supply returns after filing the GSTR-1 form, but before filing the GSTR-3B form.
With the introduction of such a form, taxpayers will be able to make the changes without having to wait to file returns for next year. This would not only enhance the accuracy of the GST return filing system but would also reduce disputes related to input tax credit.
Also Read: Complete Guide To GST Returns - GSTR-9
5. Pre-Deposit Amount Reduced for Filing GST Appeals
One of the recommendations by the council was concerning reducing the mandatory pre-deposit amount needed while filing appeals, which made the access to dispute resolution mechanisms extremely difficult for the taxpayers. Earlier, taxpayers were required to pay 10% of the tax amount in dispute for appeals and 20% for appeals before the appellate tribunal.
The revised pre-deposit reduction GST appeal will not only make it easier for the taxpayers to approach the dispute redressal system but will also make the entire process less financially burdensome.
6. Monetary Limits for GST Department Appeals (GSTAT, HC, SC)
Another one of the recommendations by the GST council was related to the monetary limit GST department appeal GSTAT. As per this, tax authorities will only take those cases wherein the disputed tax amount is above a certain prescribed limit.
The limit for appeals before the GST Appellate Tribunal (GSTAT) is set at Rs 20 lakh, Rs 1 crore as a limit for appeals before the High Court, and Rs 2 crore for appeals before the Supreme Court. Please note that cases below these tax limits will not be entertained by the authorities unless they have certain significant legal principles in question.
7. TCS Reduction For E-Commerce Operators (1% to 0.5%)
The GST council also recommended reducing the Tax Collected at Source (TCS) from supplies made through E-Commerce Operators (ECO). Earlier, operators were required to collect 1% of TCS on the net value of supplies made through their channels. The TCS reduction ECO 0.5% will improve the cash flow for sellers who primarily work using e-commerce platforms and will also ensure proper reporting of transactions under the GST guidelines.
Along with this, clarification was also issued related to interest calculation under Rule 88B of the CGST. Rule 88B interest Electronic Cash Ledger, clearly clarifies that interest on delayed payments will only be calculated on the tax liability paid through the electronic cash ledger. The council also made a recommendation concerning GSTR-9 exemption 2 crore turnover FY 2023-24, which means that businesses with a total turnover of up to Rs 2 crore for the year 2023-24 will be exempted from filing the annual return in form GSTR-9.
Petrol & Diesel Under GST — What Was Actually Said?
The CGI wants to reinstate the GST regime for petrol and diesel. The agreement is still pending among states on the imposed tax rate. The measure is to levy a uniform tax on fuels across India. The topic is expected to return in the 54th GST Council meeting or even the 55th GST Council meeting.
Impact Analysis — What The 53rd Meeting Means For You?
All the decisions and recommendations taken in the 53rd GST council meeting were extremely different from each other but shared the same overall aim, and that is to simplify compliance by resolving all the ambiguities in the Indian taxation system. The decisions were concerning various sectors, ranging from ITC deadlines and insurance to e-commerce operators.
The council also took some decisions to provide relief to taxpayers and resolve their long-standing issues with the previous guidelines and provisions. One of the most awaited decisions was the reduction in pre-deposit appeals, which was a barrier for many when it came to dispute resolution.
What To Expect From The 54th GST Council Meeting?
The next council meeting. i.e., the 54th GST council meeting is expected to continue discussions on reducing the GST rate and focus on simplifying provisions for enhanced compliance by all the taxpayers of India, whether individual or corporate entities.
The authorities can possibly focus on revising GST slabs, improving the dispute redressal framework, while also working on strengthening the functioning of the GSTAT. None of us can predict the exact changes, but taxpayers can still expect more simplified GST rules and regulations for increased compliance.
Also Read: Difference Between GST Compensation Cess And Income Tax Cess?
Conclusion
The 53rd GST Council Meeting press release pdf represents a significant step towards easing the burden and addressing the grievances of taxpayers. In her statement, the Finance Minister stated, “Today, the GST Council meeting has taken a lot of decisions on trade facilitation, easing compliance burdens, and relief to taxpayers in terms of compliance easing out.”
Here, read the complete report of the Ministry of Finance on all the recommendations made at the 53rd GST Council Meeting. Get the latest updates on government schemes and policies with Jaagruk Bharat. Join India's biggest Jaagruk Bharat community. Share your thoughts, questions, and favourite topics with us.
