Held on 22 June 2024 in New Delhi, the 53rd Meeting focused on hostel exemptions, Section 128A amnesty for early GST years, Invoice Management System, and multiple rate rationalization decisions.
Platform tickets, cloakroom, battery-operated car services — exempt from GST
Passenger benefitHostel accommodation up to ₹20,000/month per person — exempt from GST (outside hotel/club premises)
Students & working professionalsRate reduced from 12% to 5% GST
Dairy sectorRate reduced from 18% to 12% GST
Packaging industryRate reduced from 12% to 5% GST
Clean energy pushReduced from 18% to 12% GST
Safety equipmentNationwide rollout for GST registration — reduces fake registration fraud
Anti-fraudNew module for GSTR-2B to allow recipients to accept/reject/pending invoices
ITC accuracyAllow amendment of GSTR-1 details even after filing GSTR-3B for that period
Error correctionExtended validity for over-dimensional cargo — 200 km per day instead of 75 km
LogisticsLead insurer paying to co-insurer — not a separate supply, no GST on apportionment
Insurance sector clarityClarified that commission/brokerage on reinsurance transactions is taxable at 18%
Insurance sectorClarified as 'online information and database access or retrieval services' (OIDAR) for cross-border taxation
Tech companiesLoading/unloading/packing when part of GTA contract — same rate as GTA service
Transport sectorFor Section 73 (non-fraud) demand notices for FY 2017-18, 2018-19, 2019-20 — waive interest and penalty if tax amount paid by 31 March 2025
Litigation reductionTaxpayer must pay full tax demanded, withdraw any appeal/writ petition
Dispute resolutionRecommended insertion of Section 128A in CGST Act via Finance Act 2024 — operationalized later
Legislative change| Item/Service | Old Rate | New Rate | Effective |
|---|---|---|---|
| Hostel accommodation (≤₹20,000/month) | 12% | Exempt | Notified later |
| Milk cans (steel/iron/aluminium) | 12% | 5% | Notified later |
| Carton boxes (all types) | 18% | 12% | Notified later |
| Solar cookers | 12% | 5% | Notified later |
| Fire sprinklers | 18% | 12% | Notified later |
| Platform tickets (Railways) | 18% | Exempt | Notified later |
| Popcorn (ready-to-eat, not pre-packaged) | 5% | 5% | Clarified (no change) |
The 53rd GST Council Meeting was held on 22 June 2024 in New Delhi, chaired by Union Finance Minister Smt. Nirmala Sitharaman. It was attended by State/UT Finance Ministers and senior officials. This was the first Council meeting after the 2024 Lok Sabha elections and the formation of the new government.
The Council recommended exempting hostel accommodation from GST when the rent is up to ₹20,000 per month per person and the hostel is outside of a hotel, inn, guest house, club, or campsite. This benefits students and working professionals staying in paying guest accommodations or hostels. The exemption applies only when the accommodation is the primary supply.
The 53rd Council recommended introducing Section 128A in the CGST Act to provide a conditional waiver of interest and penalty for demand notices issued under Section 73 (non-fraud cases) for FY 2017-18, 2018-19, and 2019-20. The condition is that the taxpayer must pay the full tax amount by 31 March 2025 and withdraw any pending appeal or writ petition. This was later enacted through the Finance Act 2024.
IMS is a new functionality announced for the GST portal that allows recipients to actively accept, reject, or keep pending the invoices appearing in their GSTR-2B. This gives taxpayers better control over their Input Tax Credit claims and reduces disputes. Only accepted invoices will flow into ITC. Rejected invoices will notify the supplier to take corrective action.
The Council clarified that cloud computing services (SaaS, PaaS, IaaS) qualify as 'Online Information and Database Access or Retrieval Services' (OIDAR) when provided cross-border. This means foreign cloud providers supplying to Indian consumers must register for GST and charge 18% GST. For B2B supplies, reverse charge mechanism applies. This impacts companies like AWS, Azure, Google Cloud.
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