Place: Bharat Mandapam, New Delhi

Summary of the Meeting

The 53rd meeting of the GST Council was chaired by the Hon’ble Union Finance Minister. The Council discussed and decided on a wide range of legal, procedural, and rate-related matters under GST, with a focus on law amendments, simplification, litigation reduction, and clarity on contentious issues.

Agenda-wise Summary of Discussions

1. Confirmation of Previous Minutes

Minutes of the 52nd GST Council meeting held on 7 October 2023 were confirmed and adopted.

2. Ratification of Notifications and Circulars

Notifications, circulars, orders issued by the Central Government, and decisions of the GST Implementation Committee were ratified.

3. Law Committee Recommendations (Major Amendments)

Extra Neutral Alcohol (ENA): GST not to apply on ENA used for manufacture of alcoholic liquor for human consumption; related amendments approved.

Section 11A (New): Power granted to regularise non-levy or short-levy of tax arising from general trade practice.

RCM Provisions: Amendments to time of supply and invoicing provisions for reverse charge supplies.

IGST Refunds: Restriction of IGST refunds where export duty is payable; rationalisation of zero-rated supply provisions.

Summons: Explicit provision for appearance through authorised representatives.

E-commerce Operators: Penalty provisions clarified and restricted to TCS-applicable ECOs.

Transitional Credit: Relief for ISDs regarding invoices received before the appointed date.

GST Appellate Tribunal:

Revised timelines for filing appeals.

Sunset clause for anti-profiteering provisions, with cases to be handled by GST Appellate Tribunal.

Sections 73 & 74: Common time limits for demand notices and orders; insertion of new Section 74A applicable prospectively.

4. Returns and Compliance Simplification

Mandatory filing of NIL GSTR-7 by TDS deductors with waiver of late fees.

Relaxation of ITC conditions for returns filed after revocation of cancellation in initial GST years.

Introduction of FORM GSTR-1A and locking of GSTR-3B based on GSTR-1.

5. Rate and Clarification Issues

Reduction in TCS rate for e-commerce operators.

Multiple clarifications on valuation, ITC eligibility, corporate guarantees, insurance claims, ESOPs, extended warranties, loans between group companies, OFC infrastructure, and other sector-specific issues.

6. Fitment Committee Recommendations

Consideration of GST rate changes and clarifications on selected goods and services.

Some issues noted where no rate change was recommended.

7. GSTN and Administrative Matters

Pan-India rollout of biometric Aadhaar authentication.

Review of GST revenue position.

Status update on GST Appellate Tribunal.

Anti-profiteering performance reports placed for information.

8. Other Key Decisions

Changes in due dates and formats for various GST returns.

Exemption from filing GSTR-9 for small taxpayers for FY 2023–24.