Context: The 53rd GST Council meet was held on June 22nd , 2024, chaired by the Union Finance Minister and attended by state finance ministers, focused on tax amendments, Aadhaar biometric integration, and exemptions in railway services.

Key Recommendations

• Railway services: The services offered by the Indian Railways such as platform ticket sale, retiring room facility, waiting rooms, cloakroom facilities, and battery-operated car services are exempted from GST.

• Hostel services: The GST Council exempted services by way of hostel accommodation outside educational institutions to tune Rs. 20,000 per person per month and an exemption can be availed only if the stay is up to 90 days.

• Interest on penalties on tax notice: The GST Council has recommended waiver of interest on penalties on tax demand notice issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20.

• Input tax credit: The GST Council gave its nod for an extension for availing input tax credit (ITC) on any invoice or debit note.

• GST on carton boxes: The GST Council has recommended the reduction of GST on all kinds of carton boxes from 18 per cent to 12 per cent.

• GST return: The GST Council extended the deadline for furnishing returns from April 30 to June 30 for the fiscal year 2024-25 and subsequent years.

• Solar cookers: A uniform GST rate of 12 per cent recommended for solar cookers -- both single or dual energy source.

• Milk cans: The GST Council recommended a uniform GST rate of 12 per cent on all milk cans, regardless of their material (steel, iron, aluminum).

• Sprinklers: All types of sprinklers, including fire and water sprinklers, will attract a uniform GST rate of 12 per cent.

About GST Council

• Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.

• As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A.

• The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, for the introduction of Goods and Services Tax in the country was introduced in the Parliament and passed by Rajya Sabha on 3rd August 2016 and by Lok Sabha on 8th August 2016.

• GST Council is an apex member committee to modify, reconcile or procure any law or regulation based on the context of goods and services tax in India.

• The GST council is responsible for any revision or enactment of rule or any rate changes of the goods and services in India.

The council contains the following members:

• Union Finance Minister (as chairperson)

• Union Minister of States in charge of revenue or finance (as members)

• The ministers of states in charge of finance or taxation or other ministers as nominated by each state’s government (as members).

Matters on which GST Council makes recommendations

• Taxes, cesses, and surcharges levied by the Centre, States and local bodies which may be subsumed in the GST;

• Goods and services which may be subjected to or exempted from GST;

• Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply;

• Threshold limit of turnover below which goods and services may be exempted from GST;

• Rates including floor rates with bands of GST;

• Special rates to raise additional resources during any natural calamity;

• Special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand;

• Any other matter relating to the goods and services tax, as the Council may decide.

Article 279A of the Indian Constitution gives power to the President of India to constitute a joint forum of the Centre and States called the GST Council, consisting of:

• Union Finance Minister as Chairperson

• Union Minister of State, in-charge of Revenue of finance

• Minister in-charge of finance or taxation, or any other Minister nominated by each State Government

• It is an apex committee to modify, reconcile, or make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected to or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.

Decisions in the GST Council are taken during its meetings.

• One half of the total number of members of the GST Council shall constitute the quorum at its meeting.

• Each decision of the council must be supported by a majority of not less than three-fourth of weighted votes of the members present and voting.

• The vote of the Central Government shall have a weightage of 1/3rd of the votes cast, and the votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting.

Secretariat:

• The Secretariat manages the GST Council.

• It is manned by officers taken on deputation from both the Central and State Governments.

• The entire cost of managing the Secretariat is borne by the Central Government.

• The Ex-officio Secretary to the GST Council is the Revenue Secretary of India.

• The office of the council is located in New Delhi.