Quick Summary
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.
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