The 54th meeting of the GST Council is set for September 9, 2024, in New Delhi, with a comprehensive agenda that includes updates from two key Groups of Ministers (GoM). According to sources, the council will review the progress made by these panels, focusing on rate rationalization and reforms in the real estate sector.
One of the primary items on the table is the GoM on Rate Rationalization, which will present a status report to the council. Sources suggest that the GoM will highlight the need for fresh discussions on GST rates, slab structures, and the correction of the inverted duty structure. The GoM, now reconstituted with six states—Bihar, Karnataka, Uttar Pradesh, Rajasthan, West Bengal, and Kerala—will also seek more time to finalize its recommendations. The panel is scheduled to reconvene on September 25, 2024, to advance its discussions.
This GoM is also expected to revisit its interim report, originally submitted during the 47th GST Council meeting in June 2021, which called for corrections to the inverted duty structure and a review of exemptions. The panel will likely inform the council that a closer examination of sectors like textiles, handloom, fertilizers, and silk weaving is still necessary.
The second panel to present its status report is the GoM on Real Estate, which is working to boost the sector under the GST regime. The GoM, chaired by Goa Chief Minister Pramod Sawant, has been evaluating proposals such as exempting GST on industrial land/plots leased for 30+ years, redefining affordable housing in metros like Delhi and Mumbai, and exempting GST on cooperative societies. However, sources indicate that the panel has yet to reach a consensus and is expected to seek additional time for further deliberation.
The upcoming meeting will provide the GST Council with the opportunity to assess these crucial reforms, setting the stage for potential changes that could streamline tax structures and support key sectors of the economy.
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