Summary of the Major Decisions from the 54th GST Council Meeting

Summary of Major Decisions at 54th GST Council Meeting:

 

1. Goods:

– Namkeens and Savoury Products: GST on extruded/expanded savoury food products reduced from 18% to 12%, excluding un-fried/un-cooked snack pellets.

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

– Metal Scrap: Introduction of Reverse Charge Mechanism (RCM) for metal scrap supplied by unregistered persons to registered persons, with a 2% TDS on supplies by registered persons.

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

– Car and Motorcycle Seats: GST on car seats increased from 18% to 28% under HSN 9401.

 

2. Services:

 

– Life and Health Insurance: A Group of Ministers (GoM) will review GST issues related to life and health insurance, with a report expected by October 2024.

– Passenger Transport by Helicopter: GST set at 5% for helicopter passenger transport (seat share) and 18% for charter services.

– Flying Training: GST exemption for approved flying training courses by DGCA-exempted organizations.

– Research & Development Services: Exemption from GST for R&D services provided by Government Entities, universities, or institutions under Section 35 of the Income Tax Act.

– Preferential Location Charges (PLC): PLC for construction services will be considered 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 at 18% for universities’ affiliation services.

 

3. Other Measures:

 

– B2C e-Invoicing: Pilot program for B2C e-invoicing to be introduced in selected sectors and states.

– New Ledgers: Introduction of new ledgers including RCM ledger, Input Tax Credit (ITC) Reclaim ledger, and Invoice Management System (IMS).

– Renting Commercial Property: Renting of commercial property by unregistered persons to registered persons now subject to RCM.

– Import Services by Foreign Airlines: Exemption for import services by foreign airline branches in India when conducted without consideration.

– Ancillary Services in Goods Transport: Clarification on the classification of ancillary services by Goods Transport Agencies (GTA) as part of composite supply.

 

4. Trade Facilitation Measures:

 

– Waiver of Interest/Penalty: New rule 164 and related forms introduced for waiving interest or penalties under section 73 of the CGST Act for FY 2017-18 to 2019-20.

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

 

5. GST Clarifications:

 

– IGST Refunds: Clarifications on IGST refunds for exporters.

– Place of Supply: Guidelines on place of supply for advertising services.

– Demo Vehicle ITC: Clarifications on Input Tax Credit for demo vehicles.

– Data Hosting Services: Updates on GST treatment of data hosting services.

– Film Distributors’ Liability: GST for film distributors to be regularized on an “as is where is” basis for past periods.

 

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