🌺 *Summary of Outcomes from the 54th GST Council.*
🍎 *1. Rates Reduced*
👉 *1.1 Namkeens* and Extruded/Expanded Savoury Food Products: GST rate reduced *from 18% to 12%* for certain savoury food products.
👉 *1.2 Cancer Drugs*: GST rate reduced from 12% to 5% on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
🍎 *2. Rates Increased*
👉 *Car and Motorcycle Seats*: GST rate increased *from 18% to 28%* on car seats to bring parity with motorcycle seats.
🫐 *3. New Section to be Inserted*
👉 *Section 128A of CGST Act, 2017*: Introduction of procedures for waiver of interest or penalty under section 73 for FYs 2017-18, 2018-19, and 2019-20.
🍒 *4. New Rule to be Inserted*
👉 *Rule 164 in CGST Rules, 2017*: Provides procedure and conditions for waiver of interest or penalty under section 128A of CGST Act, 2017.
🍋🟩 *5. Clarifications*
👉 *5.1 Roof Mounted Package Unit (RMPU)* Air Conditioning Machines for Railways: Classified under *HSN 8415 with 28%* GST.
👉 *5.2 Life and Health Insurance*: A Group of Ministers (GoM) will examine GST on life and health insurance.
👉 *5.3 Flying Training Courses*: GST exemption clarified for DGCA-approved courses.
👉 *5.4 Preferential Location Charges (PLC)*: Clarified that PLC forms part of composite supply with construction services.
👉 *5.5 Affiliation Services*: Clarification on the taxability of affiliation services provided by educational boards and universities.
👉 *5.6 Ancillary/Intermediate Services by GTA*: Clarification that services provided by GTA in the course of transportation constitute a composite supply.
👉 *5.7 Import of Services by Branch Office*: GST exemption clarified for services imported by foreign airline companies without consideration.
🫐 *6. Others*
👉 *6.1 Reverse Charge Mechanism (RCM)*: Introduced on the supply of metal scrap and renting of commercial property by unregistered persons.
👉 *6.2 B2C E-Invoicing*: Pilot rollout recommended for selected sectors and states.
👉 *6.3 Invoice Management System (IMS)*: Introduction of new ledgers, including a Reverse Charge Mechanism (RCM) ledger and an Input Tax Credit Reclaim ledger.
👉 *6.4 Film Distribution Services*: GST liability for past periods regularised where the distributor acts on a principal basis.
👉 *6.5 Electricity Supply Services*: Exemptions provided for certain ancillary services related to electricity supply.
🍎 *7. New Recommendations*
👉 *Group of Ministers (GoM) on Compensation Cess*: Formation recommended to study the future of compensation cess.
✅ Regards:
By CA Shivam Gupta. Originally published on Tax Advisor – Your Own Tax Guide. This article reflects its original publication date; provisions and deadlines may have changed.