Recommendations during 54th meeting of the GST Council
GST
Dated:- 9-9-2024
GST Council recommends Group of Ministers (GoM) on life and health insurance related GST with existing GoM on Rate Rationalisation; to submit report by end of October 2024
GST Council also recommends formation of a GoM to study the future of compensation cess
GST Council recommends to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution notified u/s 35 of Income Tax Act using government or private grants
GST Council recommends reduction in GST rates on cancer drugs – Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 12% to 5%.
GST Council recommends roll out of a pilot for B2C e-Invoicing
The 54th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today.
The meeting was also attended by Union Minister of State for Financ
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
under HS 2106 90. The GST rate of 5% will continue on un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion.
* To also clarify that the reduced GST rate of 12% on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable prospectively.
2. Cancer Drugs
* The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to be reduced from 12% to 5%.
3. Metal Scrap
* Reverse Charge Mechanism (RCM) to be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
* A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supp
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
report by end of October 2024.
* Transport of passengers by helicopters
* To notify GST @ 5% on the transport of passengers by helicopters on seat share basis and to regularise the GST for past period on 'as is where is' basis. To also clarify that charter of helicopter will continue to attract 18% GST.
* Flying training courses
* To clarify by way of a circular that the approved flying training courses conducted by DGCA approved Flying Training Organizations (FTOs) are exempt from the levy of GST.
* Supply of research and development services
* The GST Council recommended to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961 using Government or private grants.
* Past demands to be regularised on 'as is where is' basis.
* Preferential Location Charges (PLC)
* To clarify that locat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
o educational institutions in the notification No. 12/2017-CT(R) dated 28.06.2017 and GST at the rate of 18% is applicable on the affiliation services provided by the universities.
* Import of service by branch Office
* To exempt import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration. The council also recommended to regularise the past period on 'as is where is' basis.
* Renting of commercial property
* To bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM) to prevent revenue leakage.
* Ancillary/intermediate services are provided by GTA
* To clarify that when ancillary/intermediate services are provided by GTA in the course of transportation of goods by road and GTA also issues consignment note, the service will constitute a composite supply and all such ancillary/intermediate services like loadin
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
as a composite supply. GST for the past period to be regularised on 'as is where is' basis.
* Measures for facilitation of trade:
* Procedure and conditions for waiver of interest or penalty or both, in respect of tax demands under section 73 of CGST Act, 2017 for FYs 2017-18, 2018-19 and 2019-20 as per section 128A of CGST Act, 2017:
The GST Council recommended insertion of rule 164 in CGST Rules, 2017, along with certain Forms, providing for the procedure and conditions for availment of benefit of waiver of interest or penalty or both, relating to tax demands under section 73 of CGST Act, pertaining to FYs 2017-18, 2018-19 and 2019-20, as per section 128A of CGST Act. The Council also recommended to notify under sub-section (1) of section 128A of CGST Act, 31.03.2025 as the date on or before which the payment of tax may be made by the registered persons, to avail the said benefit as per section 128A of the CGST Act. The Council also recommended the issuance of a circular to cla
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
irming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST Act, and where appeal against the said order has not been filed. The Council also recommended issuance of a circular to clarify the procedure and various issues related to implementation of the said provisions of sub-section (5) and sub-section (6) of section 16 of CGST Act, 2017.
* Amendments in rule 89 and rule 96 of CGST Rules, 2017 and to provide clarification in respect of IGST refunds on exports where benefit of concessional/ exemption notifications specified under rule 96(10) of CGST Rules, 2017 has been availed on the inputs:
The GST Council recommended to clarify that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notifica
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ports.
* Issuance of clarifications through the circulars to remove ambiguity and legal disputes in certain issues:
The GST Council recommended issuance of circulars to provide clarity and to remove doubts and ambiguities arising in the following issues due to varied interpretations by the field formations:
* Clarification on the Place of Supply of advertising services provided by Indian advertising companies to foreign entities.
* Clarification regarding availability of Input Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.
* Clarification on Place of Supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
* The Council also recommended amendments in some other provisions of CGST Rules, 2017.
* Other measures:
1. B2C E-invoicing:
The GST Council recommended roll out of a pilot for B2C e-Invoicing, following the successful implementation of e-invoicing in the B2B se
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =