What To Know About The 53rd GST Council Meeting? Major Changes, Announcements And Benefits

The Finance Minister of India, GST Council Chairman Nirmala Sitharaman, and State Finance Ministers attended the 53rd GST Council meeting held on Saturday, June 22, 2024. The meeting discussed and announced several crucial measures, along with changes in the goods and service rate.

However, before getting to the key takeaways, let’s understand the GST Council, the function of the GST Council, what is GST and how it impacts the Indian economy.

Different Types Of GST

There are mostly four types of GST.

1. SGST, also known as the State Goods and Services Tax, is imposed by the state government on intra-state goods and services transactions.

2. CGST, also known as the Central Goods and Services Tax, is imposed by the central government on the intra-state transaction of goods and services.

3. IGST, also known as the Integrated Goods and Services Tax, is charged on inter-state transactions of goods and services and is applied to imports and exports.

4. UGST, known as Union Territory Goods and Services, is levied by UT and is imposed on all transactions carried out in any UT.

Key Points To Know From 53rd GST Council Meeting

Now that all the basic knowledge of GST, its existence, and its needs is clear, let’s understand all the key takeaways mentioned in the 53rd GST Council Meeting in Delhi.

Aadhaar-Based Biometric Authentication

“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 the cases,” announced Finance Minister Nirmala Sitharaman. This will help enhance tax compliance by minimising fraud activities.

GST Rate On Milk Cans

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.

GST On Petrol And Diesel

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.

Services Provided By Indian Railways

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.

GST Reduction On Carton Boxes

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.

Exemption For Hostel Accommodation

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.

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.

Small Taxpayers Will Get Extension Of GSTR 4 Filing Deadline

To help small taxpayers, the GST Council proposed to extend the deadline to provide the 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.

Interest and Penalties Waiver For Non-Fraudulent Cases

The Finance Minister announced that the GST Council has proposed to waive off all interest and penalties for demand notices issued under Section 73 of the GST Act. This applies to cases not involving fraud, suppression, or misstatements.