Recommendations from 54th GST Council Meeting

Changes/Clarifications in GST Tax Rates

• GST on Namkeens & extruded savoury products reduced from 18% to 12%, matching the rate for namkeens and similar products
• GST on cancer drugs Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%
• Reverse Charge Mechanism (RCM) to be applied on metal scrap supply by unregistered persons to registered persons. TDS of 2% introduced for B2B supply.
• Roof Mounted Air Conditioning for Railways to be clarified under 28% GST
• GST on car seats increased from 18% to 28%, matching the rate for motorcycle seats

Services

• A Group of Ministers (GoM) will study GST issues on life and health insurance, with a report due by October 2024.
• GST @ 5% for passenger transport by helicopters; charter services continue with 18% GST
• GST exemption for DGCA-approved flying training courses
• GST exemption for research services by government entities and institutions using government or private grants
• Preferential Location Charges are considered part of the composite supply of construction services, eligible for the same tax treatment
• GST on affiliation services by educational boards clarified; exemption for State/Central boards to government schools.
• Exemption for Import of Services by Foreign Airlines Branch Offices when no consideration is paid
• RCM applied to renting of commercial property by unregistered persons to registered persons
• Clarified that ancillary services by GTA as part of transportation are considered a composite supply

Other Measures

• Pilot program for B2C e-invoicing to improve efficiency and allow customers to verify invoices.
• Introduction of RCM, Input Tax Credit Reclaim ledgers, and an Invoice Management System for better reconciliation and error reduction
• Clarified and simplified refund process for exporters under certain concession/exemption notifications.