Summary of Outcomes from the 54th GST Council Meeting developed by Team
@GstPanacea

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
2.1 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
3.1 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
4.1 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
7.1 Group of Ministers (GoM) on Compensation Cess: Formation recommended to study the future of compensation cess.