The 54th GST Council meeting will be held on September 9, 2024 which will be chaired by the Union Finance Minister. This will be the 1st GST Council meet after the Union Budget 2024-25.
Let’s speculate what’s on the bucket list:
The GST council may deliberate on reduction in the GST rates on insurance which may prove to be a major boon for the policyholders.
The Minister Of Road Transport And Highways, Nitin Gadkari in a letter written to the Union Finance Minister, Nirmala Sitharaman on 28.0.2024 has questioned the imposition of 18% GST on life insurance and medical insurance premiums. Click Here to read the letter.
- Speed-Up GST Appellate Tribunal Mechanism
Recently, the GST Appellate Tribunals has been set-up which is a significant step towards streamlining dispute resolution under GST. However, the administration and effective operationalisation of these Tribunals needs to be sped up. The council may recommend steps to the administration and effective operationalisation of these Tribunals.
- GST Burden On Foreign Airlines
The council may recommend exemption on the import of services by a foreign airline’s head office abroad when received via no consideration. The show cause notices were issued by the Directorate General of GST Intelligence (DGGI) to various foreign airlines, demanding 18% GST on services received by their head offices abroad.
- Uniform GST on All Snacks
The Council may recommend the same rate of GST rate on snacks prepared through extrusion processes and other snacks like bhujia and namkeen. The recommendation may bring a big relief to the companies like ITC, PepsiCo, and Haldiram, which are currently facing litigation against 18% GST demands.
- GST On EV Sector
The GST council may recommend the GST exemption on GST on charging services at public stations.
- Rate Rationalisation
The upcoming GST Council meeting will take up the issue of rate rationalisation. There will be a discussion on the issue. Committee of officers will make a presentation on rate rationalisation.
The primary motive of rate rationalisation is not to add to the revenue but to streamline tax rates across all sectors with the objective to reduce the cascading effect of taxes and litigation related to tax classifications.
