24th GST Council Meeting – An Overview

Narendra Kumar

03 Apr, 2021

What are the Key Decisions taken in 24th GST Council Meeting?

The 24^th GST Council meeting which took place on 16^th December 2017 through video conference under the Chairmanship of the Union Minister of Finance and Corporate Affairs Mr Arun Jaitley. It discussed the implementation of the E-way Bill system in the country. However, up until the time, the states were authorized to continue with their own separate E-way Bill systems.

Under Goods and Services Tax (GST) Rules, ferrying goods worth more than Rs 50, 000 within or outside the state will require an Electronic –way or E-way bill by prior online registration of the consignment.

To generate the E-way bill the supplier and the transporter will have to upload details on the GST portal after which the E-way bill will be generated having a unique code as E-way Bill Number (EBN) which will be made available to the supplier, the transporter and the recipient at the common portal.

Finance Minister said that the Council has prepared a schedule with regard to the E-way bill to check the evasion. This will enable to enhance the collection. The GST Council has however stated earlier in October 2017 that E-way bill would be introduced in a staggered manner from January 1 and subsequently from April 1 nationwide. It will be beneficial for the taxpayers registered under GST to be prepared for the same. This is to make sure that their business doesn’t suffer after full implementation of E-way bill provisions.

Main Discussion Point in the GST Council Meeting Held

• Until the time when the national E-way bill will be ready to start all the states are now authorized to continue their own E-way Bill systems.
• As the transporters and traders have filed the request that they are facing problems in the interstate movement of goods. Hence they requested to bring E-way bill on all India basis as soon as possible. The government has taken the decision to implement the E-way Bill system for interstate and intrastate movement of goods for traders and transporters latest up to 16^th January 2018. However, it will be compulsory to be followed by 1^st February.
• However, the uniformity in the E-way Billing system nationwide will be implemented from 1^st June 2018.
• GST Council^[1] has reviewed the progress status of Hardware and software which is required to introduce the E-Way Bill system. As such following decisions are taken by the GST Council regarding the applicability and implementation of the E-way Billing system:
  • E-way Bill will be initiated and implemented nationally by 16 January 2018 on a trial basis. Trade and transporters can use this system voluntary basis from 16 January.
  • E-way Bill Rules for Implementation on National Level for Interstate movement of goods will be started by -1 February.
• Lastly, the Council that met in Guwahati in November 2017 had decided to reduce the GST rates on over 200 items including a reduction in GST rate from 28% to 18% for around 178 This will reduce the revenue in November as compared to October.
• The Invoice matching has however deferred to few months to reduce the compliance burden on taxpayers and encourage more return filing.

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Also, Read

• GST Council 23rd Meeting: Major changes in GST Rates