Recommendations of 54th GST Council Meeting

Summary of the key points discussed in the 54th GST Council meeting today:

1. Goods:

Namkeens and Extruded/Expanded Savoury Food Products: GST rate reduced from 18% to 12% for extruded/expanded savoury products (except un-fried/un-cooked snack pellets).

Cancer Drugs: GST rate on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%.

Metal Scrap: Reverse Charge Mechanism (RCM) introduced for supply of metal scrap by unregistered persons to registered persons; TDS of 2% on supply by registered persons.

Railway AC Units: Roof Mounted Package Unit (RMPU) air conditioning machines for railways to attract 28% GST.



2. Services:

Life and Health Insurance: Group of Ministers (GoM) to study GST issues on life and health insurance and report by October 2024.

Passenger Transport by Helicopter: GST @ 5% on helicopter passenger transport (seat share); 18% for charter services.

Flying Training: Approved flying training courses by DGCA-exempted organizations exempted from GST.

Research & Development Services: Exempt supply of R&D services by Government Entities, universities, or institutions notified under Section 35 of the Income Tax Act.

Preferential Location Charges (PLC): PLC for construction services to be treated as part of the composite supply of the main construction service.

Affiliation Services: GST exemption for affiliation services provided by state/central educational boards to government schools; GST @ 18% for universities' affiliation services.

3. Other Measures:

B2C e-Invoicing: Pilot for B2C e-invoicing to be rolled out in select sectors/states.



Renting Commercial Property: Renting of commercial property by unregistered persons to registered persons brought under RCM.

Import Services by Foreign Airlines: Exempt import services by foreign airline branches in India when done without consideration.

Ancillary Services in Goods Transport: Clarification issued on classification of ancillary services by GTA as part of composite supply.

4. Measures for Trade Facilitation:

Waiver of Interest/Penalty: New rule 164 and related forms for availing waiver of interest or penalty under section 73 of CGST Act for FY 2017-18 to 2019-20.

Section 16 Amendments: Special procedure for rectification of orders and clarifications for taxpayers affected by wrong input tax credit (ITC) claims under section 16 of the CGST Act.

5. GST Clarifications:

Clarifications on IGST refunds for exporters, place of supply for advertising services, demo vehicle ITC, and data hosting services.

Film Distributors' Liability: GST on film distributors to be regularized on an "as is where is" basis for past periods.

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