The 52nd GST Council meeting was held today, October 7, 2023, in New Delhi, under the chairmanship of Union Finance Minister Nirmala Sitharaman. The following are the key outcomes of the meeting:

• New GST rates: The Council approved new GST rates for the following goods and services:
  • Online food delivery: Increased from 5% to 7%
  • Hotel accommodation up to Rs. 1,000 per night: Reduced from 18% to 12%
  • Certain healthcare services, such as pathology tests and diagnostic imaging: Reduced from 5% to nil
• New GST return filing system: The Council approved a new GST return filing system, which will be implemented in a phased manner from January 1, 2024. The new system will be more simplified and efficient, and will reduce the compliance burden on businesses.
• Due dates for GST return filing: The Council extended the due dates for filing GST returns for the months of July and August 2023 to November 11, 2023.
• Other GST updates: The Council also made the following announcements:
  • The exemption of GST on the supply of goods and services to Special Economic Zones (SEZs) has been extended by two years, till March 31, 2025.
  • The threshold limit for registration under GST has been increased from Rs. 20 lakh to Rs. 40 lakh for certain states.
  • The Council also announced a number of measures to simplify the GST compliance process for small businesses.

In addition to the above, the Council also discussed a number of other issues, including:

• The levy of GST on online gaming, casinos, and horse racing: The Council reviewed the progress made by states in implementing the new GST rates on these activities. The new rates, which are 28%, came into effect on October 1, 2023.
• The taxation of e-commerce: The Council discussed the taxation of e-commerce businesses, including the issue of GST on foreign e-commerce companies.
• The compensation to states for GST revenue losses: The Council discussed the issue of compensation to states for GST revenue losses. The compensation period is scheduled to end on June 30, 2024.

The Council also decided to set up a group of ministers to examine the issue of GST rate rationalization. The group will submit its report within three months.

Overall, the 52nd GST Council meeting was a productive one, with a number of important decisions being taken. The new GST rates and changes to the GST return filing system will have a significant impact on businesses. Businesses should carefully review the changes and make necessary changes to their systems and processes to comply with the new requirements.