Summary of Points Finalized in the Meeting

Focus on MSME Sector
The Council held a special meeting dedicated to the Micro, Small & Medium Enterprises (MSME) sector, recognizing its key role in job creation and contribution to India’s economy. Discussions emphasized the need for policy and tax measures to promote MSMEs and enhance their competitiveness.
29th GST Council Minutes, page 1

Review of Cement Tax Rate and Revenue Impact
The Council discussed a proposal to reduce GST on cement from 28% to 18% to boost housing and infrastructure projects.

Bihar, West Bengal, Andhra Pradesh, and other States supported the rate reduction, citing high employment and economic impact.

The Department of Revenue estimated a revenue loss of ₹14,000 crore annually if the rate was cut.

The Chairperson suggested further study before decision-making, noting the need to capture full value chains and revenue leakages.

The Fitment Committee was asked to study this further.
29th GST Council Minutes, pages 6–8

Study on Rate Reductions and Compliance Impact
The Council agreed to commission a study using empirical data to examine how rate reductions from 28% to 18% affected compliance and tax collections.
The Fitment Committee and Law Committee were directed to analyze data and submit reports.
29th GST Council Minutes, page 8

Anti-Profiteering Awareness and Consumer Education
Members highlighted that benefits from tax rate reductions were not being passed to consumers.

The Council decided that 0.1–0.2% of GST collections or funds from the Anti-Profiteering Authority (approx. ₹150 crore) be used for GST consumer education and advertisements.
29th GST Council Minutes, page 8–9

Rate Rationalization for Outdoor Catering and Cinema Services

Members from West Bengal, Goa, Bihar, and Andhra Pradesh proposed reducing GST on outdoor catering from 18% to 5%, aligning it with restaurant services.

For cinema tickets, members proposed a uniform 18% rate, replacing the dual 18%/28% structure.

The Fitment Committee was tasked to examine these rate adjustments.
29th GST Council Minutes, page 9

IGST Settlement with States and Union Territories

The Council discussed the ₹1.6 lakh crore IGST balance issue.

It was decided that IGST accumulation beyond ₹1.6 lakh crore in FY 2018–19 would be settled provisionally every two months with States and Union Territories, including Delhi and Puducherry.

The matter of distribution of past accumulated IGST was referred to a Committee chaired by CBIC, with Finance Secretaries of Delhi, Puducherry, Tamil Nadu, and others.
29th GST Council Minutes, page 10

New Return System Implementation

The Council noted GSTN’s feedback that new return formats would be operational from 1st April 2019, with trial runs starting February 2019.

Taxpayers would be allowed to switch from monthly to quarterly filing only once per financial year.
29th GST Council Minutes, page 5

Review by Law and Fitment Committees

The Law Committee was tasked to examine the feasibility of MRP-based or capacity-based tax assessments.

The National Anti-Profiteering Authority (NAA) was asked to submit a report in the next meeting on enforcement outcomes, notices issued, and recoveries.
29th GST Council Minutes, page 12

Formation of Group of Ministers (GoM) on MSME Issues

After extensive discussions on MSME challenges, the Council decided to form a Group of Ministers (GoM) to propose a comprehensive plan to:

Simplify compliance for MSMEs.

Examine refund and composition schemes.

Suggest financial assistance and credit mechanisms.
29th GST Council Minutes, page 17

Next GST Council Meeting
It was decided that the 30th GST Council Meeting would be convened within the next few weeks, focusing on revenue augmentation and the GoM report on MSMEs.
29th GST Council Minutes, page 42