Decoding the 53rd GST Council Meet: What You Need to Know

June 24, 2024 Trading 2 min read
Key Highlights from the 53rd GST Council Meeting

Key Highlights from the 53rd GST Council Meeting: What You Need to Know

The 53rd GST Council meeting, chaired by Finance Minister Nirmala Sitharaman on June 22, 2024, addressed several crucial aspects affecting taxation in India. Here’s a comprehensive overview of the decisions and implications discussed:

No Relief for Online Gaming Industry

Despite expectations, the GST rate for online gaming, casinos, and horse racing remains unchanged at 28%. This decision underscores the council’s stance on maintaining the existing tax structure for these sectors.

Changes in GST Tax Rates

The GST Council announced adjustments in tax rates for various items and services to streamline and improve the taxation system. Here are the revised rates:

Items/Service GST Rate
All milk cans 12%
Cartons 12%
Solar Cookers 12%
Sprinklers 12%
Railway Service NIL

These revisions aim to rationalize tax rates and enhance compliance across different sectors.

Will Petrol and Diesel Come Under GST?

Finance Minister Nirmala Sitharaman hinted at bringing petrol and diesel under the GST regime. However, the decision ultimately rests with the states, highlighting ongoing discussions and considerations regarding this significant potential reform.

Support for Students

The GST Council introduced supportive measures regarding hostel accommodations:

  • Hostels located outside educational institutes are now GST exempt for stays costing up to ₹20,000 per person monthly.
  • This exemption applies to stays of at least 90 continuous days, providing relief to students and individuals residing in such facilities.

Hostels within educational institutions already enjoy GST exemption.

Minimizing Government Legal Disputes

To streamline legal processes and reduce disputes, the GST Council introduced new monetary thresholds for GST appeals:

  • GST Appellate Tribunal: ₹20 lakh
  • High Court: ₹1 crore
  • Supreme Court: ₹2 crore

These thresholds aim to expedite resolution and minimize the burden of legal proceedings for taxpayers and the government alike.

Interest and Penalties Waiver

In a significant relief measure, taxpayers facing notices under Section 73 of the CGST Act for fiscal years 2017-18, 2018-19, and 2019-20 can benefit from a full tax settlement by March 31, 2025. This waiver applies in cases where there is no fraud, suppression, or wilful misstatement involved, providing eligible taxpayers with an opportunity to resolve tax issues effectively.

Disclaimer: The information provided in this article is based on the outcomes of the 53rd GST Council meeting and is intended for informational purposes only. It does not constitute financial or legal advice. Readers are advised to consult with tax professionals or relevant authorities for specific guidance.

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