52nd GST Council meeting

• The 52^nd GST Council meeting took place on 7th October 2023 at Sushma Swaraj Bhawan, New Delhi.

MAJOR OUTCOMES

• GST on molasses has been reduced from 28% to 5%.
• The District Mineral Foundation Trust (DMFT) in mineral mining are eligible for the same GST exemptions as other government authorities.
• The GST Council has ceded the right to tax the Extra Neutral Alcohol (ENA) used in liquor for human consumption to states.
  • ENA is highly concentrated alcohol and key ingredient for pharmaceuticals, perfumes, toiletries etc.
• Rules defined for Composition of GSTAT
  • Minimum age limit is 50 years while the maximum is 70 years for the President and 67 years for members of GSTAT.
  • Advocates with 10 years experience can only be appointed as judicial members.

ABOUT GST COUNCIL

• It is a constitutional body under Article 279A (101 Constitution Amendment Act, 2016).
• Composition
  • Chairperson: Union Finance Minister
  • Members:
    • Union Minister of State, in-charge of Revenue
    • Minister in charge of finance or taxation or any other Minister nominated by each State Government.
  • Functions– Under Article 279A (4), the Council makes recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern place of supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.
  • Decision requires a 3/4^th majority of members present and voting.
    • vote of the Central Government shall have a weightage of one-third of the total votes cast.
    • votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast in that meeting.

ABOUT GST APPELLATE TRIBUNAL (GSTAT)

• GSTAT is the forum of the second appeal under the GST laws and the first common dispute resolution forum between the Centre and States.
• All appeals against the orders in the first appeals issued by the Appellate Authorities under the CGST and SGST Laws lie before the GST Appellate Tribunal, common under both the Central and State GST Acts.
• Being a common forum, the GST Appellate Tribunal will ensure uniformity in the dispute redressal under GST and, therefore, in the implementation of GST across India.