Key Highlights from the 53rd GST Council Meeting

The 53rd GST Council Meeting, chaired by Union Finance Minister Nirmala Sitharaman, took place on June 22 in New Delhi. The council made several important decisions to refine tax rates and service exemptions under the GST regime. Here are the main takeaways:

Changes in GST Rates for Goods

1. Aircraft Parts and Tools: 5% IGST on imports of parts, components, testing equipment, tools, and tool-kits for aircraft.

2. Milk Cans: Uniform 12% GST on steel, iron, and aluminium milk cans.

3. Carton Boxes: GST reduced from 18% to 12% on cartons, boxes, and cases of paper.

4. Solar Cookers: 12% GST applied to all solar cookers.

5. Poultry Machinery Parts: 12% GST on parts for poultry-keeping machinery.

6. Sprinklers: 12% GST on all types of sprinklers, including fire water sprinklers.

Exemptions and Extensions

1. Defence Imports: IGST exemption on specified defence items extended until June 30, 2029.

2. RAMA Programme Imports: IGST exemption on research equipment/buoys under the RAMA programme.

3. SEZ Imports: Compensation Cess exemption on imports by SEZ units/developers since July 1, 2017.

4. Defence Canteens: Exemptions on supply of aerated beverages and energy drinks to unit-run canteens under the Ministry of Defence.

5. AK-203 Rifle Kits: Ad hoc IGST exemptions on technical documentation for imported AK-203 rifle kits for the Indian Defence forces.

Service Exemptions

1. Indian Railways: Exemptions for services like platform tickets, retiring rooms, cloakrooms, battery-operated car services, and intra-railway transactions.

2. Accommodation Services: Exemption for accommodation up to Rs 20,000/month per person for stays of 90+ days, benefiting students and working professionals.

3. SPV Services: Exemption for services provided by Indian Railways to SPVs and vice versa.

Other Recommendations

1. Interest and Penalties: Waiver of interest and penalties for Section 73 demand notices for FY 2017-18, 2018-19, and 2019-20 if full tax is paid by March 31, 2025.

2. Input Tax Credit (ITC): Time limit for ITC on invoices/debit notes under Section 16(4) for FY 2017-18 to 2020-21 set as November 30, 2021, for returns filed by this date.

3. Monetary Limits for GST Appeals: Set at Rs 20 lakh (GST Appellate Tribunal), Rs 1 crore (High Court), and Rs 2 crore (Supreme Court).

4. Aadhaar Authentication: Nationwide implementation of biometric-based Aadhaar authentication for GST registration applicants.

5. Reduction in Pre-deposit Amount: Reduced pre-deposit amounts for filing appeals under the GST Act to ease cash flow.

6. Appeal Filing Period: Amendments to start the three-month period for GST Appellate Tribunal appeals from a notified date.

7. Interest Burden: No interest on delayed return filing if the amount is available in the Electronic Cash Ledger on the due date.

8. Anti-Profiteering: Sunset clause from April 1, 2025, for new anti-profiteering applications.

9. TCS Rate Reduction: TCS rate by Electronic Commerce Operators (ECOs) reduced from 1% to 0.5%.

10. GST on Extra Neutral Alcohol: Exemption recommended when used for manufacturing alcoholic liquor.

11. Amendments for Export Duty Cases: Restrictions on IGST refunds where export duty is payable.

12. Threshold for B2C Inter-State Supplies: Reduced from Rs 2.5 lakh to Rs 1 lakh for reporting invoice-wise in FORM GSTR-1.

13. Monthly Filing of GSTR-7: Required monthly by TDS deductors without late fees for delayed filing of Nil returns.

14. Common Time Limits for Demand Notices: Uniform time limit for issuing demand notices and orders under the CGST Act, 2017.

15. Other Services Changes: Including co-insurance premium, re-insurance commission, GST on reinsurance services, retrocession clarification, RERA collections, and RuPay debit cards incentives.
    

These changes aim to simplify the GST regime and provide various exemptions and reliefs to different sectors. It is essential to stay updated with these modifications to ensure compliance and benefit from the available exemptions.

Feel free to share your thoughts or questions about these updates. How do you think these changes will impact your business or daily life? Let's discuss in the comments!