GST Council approves Recommendation on Measures to issue on IGST Settlement

The GST Council has proposed an amendment to the CGST Act to insert a definition for "local fund" and "municipal fund." This proposed change aims to clarify the treatment of funds collected by local authorities, such as municipalities, under GST. By defining these terms, the government intends to ensure that local and municipal funds are treated correctly under the tax regime, particularly concerning GST exemptions or concessions. The move is expected to simplify compliance for local authorities and provide a clear framework for taxing services or goods funded by municipal or local funds. This change is a part of the broader efforts to streamline the application of GST across various sectors of the economy.