Main Highlights from the 53rd GST Council Meeting

Main Highlights from the 53rd Goods and Services Tax Council Meeting

Changes in Goods and Services Tax Rates of Goods:

• Aircraft Parts and Tools: 5% IGST on imports of parts, components, testing equipment, tools, and toolkits for aircraft.
• Solar Cookers: 12% GST on all solar cookers.
• RAMA Programme Imports: IGST exemption on research equipment/buoys under the RAMA programme.
• Poultry Machinery Parts: 12% GST on parts of poultry keeping machinery.
• Sprinklers: 12% GST on all types of sprinklers, including fire water sprinklers.
• Milk Cans: 12% GST on all steel, iron, and aluminium milk cans.
• Carton Boxes: GST on cartons, boxes, and cases of paper reduced from 18% to 12%.
• Defence Imports: IGST exemption on specified defence items extended until 30th June 2029.
• SEZ Imports: Compensation Cess exemption on imports by SEZ units/developers retroactive to 1st July 2017.

Other Goods-Related Changes:

• Ad hoc IGST exemptions on technical documentation for AK-203 rifle kits imported for Indian Defence forces.
• Exemptions on the supply of aerated beverages and energy drinks to unit-run canteens under the Ministry of Defence.

Service Exemptions:

• Accommodation Services: Exemptions for accommodation services to benefit students and working professionals. Accommodation up to Rs 20,000/month per person for stays of 90+ days are exempt.
• Certain Indian Railways services and intra-railway supplies have been exempted, including platform tickets, retiring rooms, cloak rooms, battery-operated car services, and intra-railway transactions.
• SPV Services: SPV services to Indian Railways and maintenance services provided by Indian Railways to SPVs have been exempted.

Other GST Council Meeting Recommendations:

• Input Tax Credit : The time limit for Input Tax Credit on invoices/debit notes under Section 16(4) for FY 2017-18 to 2020-21 is deemed to be 30th November 2021 for returns filed by this date.
• Litigation Reduction: Increased monetary limits for department appeals: Rs 20 lakh for the GST Appellate Tribunal, Rs 1 crore for the High Court, and Rs 2 crore for the Supreme Court.
• Interest and Penalties: Waiver of interest and penalties for Section 73 demand notices for FY 2017-18, 2018-19, and 2019-20 if the full tax is paid by 31st March 2025.
• Interest Burden: No interest on delayed return filing if the amount is available in the Electronic Cash Ledger on the due date.
• Appeal Filing Period: Amendment of the CGST Act to start the three-month period for GST Appellate Tribunal appeals from a notified date.
• Pre-Deposit for Appeals: Reduction in the quantum of pre-deposit for filing GST appeals.
• Anti-Profiteering: Introduction of a sunset clause from 1st April 2025 for new anti-profiteering applications.

Details of 53rd GST Council Meeting