{"id":10064,"date":"2024-09-10T07:35:28","date_gmt":"2024-09-10T06:35:28","guid":{"rendered":"https:\/\/www.klickongstworld.com\/blog\/?p=10064"},"modified":"2024-09-10T07:41:16","modified_gmt":"2024-09-10T06:41:16","slug":"recommendations-during-54th-meeting-of-the-gst-council","status":"publish","type":"post","link":"https:\/\/www.klickongstworld.com\/blog\/recommendations-during-54th-meeting-of-the-gst-council\/","title":{"rendered":"Recommendations during 54th meeting of the GST Council"},"content":{"rendered":"<p align=\"center\"><strong>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<\/p>\n<p>  GST Council also recommends formation of a GoM to study the future of  compensation cess<\/p>\n<p>  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<\/p>\n<p>  GST Council recommends reduction in GST rates on cancer drugs &#8211; Trastuzumab  Deruxtecan, Osimertinib and Durvalumab from 12% to 5%.<\/p>\n<p>  GST Council recommends roll out of a pilot for B2C e-Invoicing<\/strong><\/p>\n<p><strong>&nbsp;<\/strong><\/p>\n<p align=\"justify\">The 54th GST Council met  under the Chairpersonship of Union Minister for Finance &amp; Corporate Affairs  Smt. Nirmala Sitharaman in New Delhi today.<\/p>\n<p align=\"justify\">The meeting was also  attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief  Ministers of Goa and Meghalaya; Deputy Chief Ministers of Arunachal Pradesh,  Bihar, Madhya Pradesh, and Telangana; besides Finance Ministers of States &amp;  UTs (with legislature) and senior officers of the Ministry of Finance &amp;  States\/ UTs.<\/p>\n<p align=\"justify\">The GST Council&nbsp;<em>inter-alia&nbsp;<\/em>made  the following recommendations relating to changes in GST tax  rates,&nbsp;provide relief to individuals,&nbsp;measures for facilitation of  trade and measures for streamlining compliances in GST.<\/p>\n<p><strong><u>A. Changes\/Clarifications  in GST Tax Rates<\/u><\/strong><\/p>\n<p><strong>GOODS<\/strong><br \/>\n1. Namkeens  and Extruded\/Expanded Savoury food products<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">The GST rate of 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 to be&nbsp;reduced from 18% to       12%&nbsp;at par with namkeens,&nbsp;<em>bhujia<\/em>, mixture,&nbsp;<em>chabena<\/em>&nbsp;(pre-packaged       and labelled) and similar edible preparations in ready for consumption       form which are classifiable 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.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">To also&nbsp;clarify&nbsp;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&nbsp;prospectively.<\/div>\n<\/li>\n<\/ul>\n<p>2. Cancer Drugs<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">The GST rate on cancer drugs namely,       Trastuzumab Deruxtecan, Osimertinib and Durvalumab&nbsp;to be       reduced&nbsp;from 12% to 5%.<\/div>\n<\/li>\n<\/ul>\n<p>3. Metal  Scrap<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">Reverse Charge Mechanism (RCM) to be       introduced&nbsp;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.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">A&nbsp;TDS of 2%&nbsp;will be applicable       on supply of metal scrap by registered person in B to B supply.<\/div>\n<\/li>\n<\/ul>\n<p>4. Roof Mounted Package Unit (RMPU) Air  Conditioning Machines for Railways<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;that Roof Mounted       Package Unit (RMPU) Air Conditioning Machines for Railways would be       classified under HSN 8415 attracting a GST rate of 28%.<\/div>\n<\/li>\n<\/ul>\n<p>5. Car and Motor cycle seats<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;that car seats are       classifiable under 9401 and attract a GST rate of 18%.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">GST rate on car seats classifiable under       9401&nbsp;to be increased&nbsp;from 18% to 28%. This uniform rate of 28%       will be applicable&nbsp;prospectively&nbsp;for car seats of motor cars in       order to bring parity with seats of motorcycles which already attract a GST       rate of 28%.<\/div>\n<\/li>\n<\/ul>\n<p><strong>SERVICES<\/strong><\/p>\n<p>1. Life  and Health insurance<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">GST Council recommended to constitute a       Group of Ministers (GoM) to holistically look into the issues pertaining       to GST on the life insurance and health insurance. The GoM members are       Bihar, UP, West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh,       Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat. The GoM is to       submit the report by end of October 2024.<\/div>\n<\/li>\n<\/ul>\n<p>2. Transport  of passengers by helicopters<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;notify&nbsp;GST @ 5% on the       transport of passengers by helicopters on seat share basis and to       regularise the GST for past period on &#8216;<em>as is where is&#8217;<\/em>&nbsp;basis.       To also&nbsp;clarify&nbsp;that charter of helicopter will continue to       attract 18% GST.<\/div>\n<\/li>\n<\/ul>\n<p>3. Flying  training courses<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;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.<\/div>\n<\/li>\n<\/ul>\n<p>4. Supply  of research and development services<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">The GST Council recommended       to&nbsp;exempt&nbsp;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.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">Past demands to be&nbsp;regularised&nbsp;on&nbsp;<em>&#8216;as       is where is&#8217;<\/em>&nbsp;basis.<\/div>\n<\/li>\n<\/ul>\n<p>5. Preferential  Location Charges (PLC)<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;that location       charges or Preferential Location Charges (PLC) paid along with the       consideration for the construction services of       residential\/commercial\/industrial complex before issuance of completion       certificate forms part of composite supply where supply of construction       services is the main service and PLC is naturally bundled with it and are       eligible for same tax treatment as the main supply that is, construction       service.<\/div>\n<\/li>\n<\/ul>\n<p>6. Affiliation  services<\/p>\n<ul>\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;that affiliation  services provided by educational boards like CBSE are taxable. However,  to&nbsp;exempt&nbsp;affiliation services provided by State\/Central educational  boards, educational councils and other similarly placed bodies to Government  Schools prospectively. The issue for the past period between 01.07.2017 to  17.06.2021 to be regularized on &#8216;<em>as is where is&#8217;<\/em>&nbsp;basis.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;by way of circular that the affiliation services  provided by universities to their constituent colleges are not covered within  the ambit of exemptions provided to educational institutions in the  notification No. 12\/2017-CT(R) dated 28.06.2017 and GST&nbsp;at the rate of 18%  is applicable&nbsp;on the affiliation services provided by the universities.<\/div>\n<\/li>\n<\/ul>\n<p>7. Import  of service by branch Office<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;exempt&nbsp;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&nbsp;regularise&nbsp;the past period on &#8216;<em>as       is where is<\/em>&#8216; basis.<\/div>\n<\/li>\n<\/ul>\n<p>&nbsp;8. Renting  of commercial property<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To bring&nbsp;renting of commercial       property by unregistered person to a registered       person&nbsp;under&nbsp;Reverse Charge Mechanism (RCM)&nbsp;to prevent       revenue leakage.<\/div>\n<\/li>\n<\/ul>\n<p>&nbsp;&nbsp;9. Ancillary\/intermediate  services are provided by GTA<\/p>\n<ul type=\"disc\">\n<li>\n<div align=\"justify\">To&nbsp;clarify&nbsp;that when       ancillary\/intermediate services are provided by GTA in the course       of&nbsp;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 loading\/unloading, packing\/unpacking,       transshipment, temporary warehousing etc. will be treated as part of the       composite supply. If such services are not provided in the course of       transportation of goods and invoiced separately, then these services will       not be treated as composite supply of transport of goods.<\/div>\n<\/li>\n<\/ul>\n<p><strong>Other changes<\/strong><\/p>\n<ul>\n<li>\n<div align=\"justify\">To regularize the GST liability for the past period prior to 01.10.2021 on as is where is&#8217; basis, where the film distributor or sub-distributor acts on a  principal basis to acquire and distribute films.<\/div>\n<\/li>\n<li>\n<div align=\"justify\">To&nbsp;exempt&nbsp;supply of services such  as application fees for providing electricity connection, rental charges  against electricity meter, testing fees for meters\/ transformers\/capacitors,  labour charges from customers for shifting of meters\/service lines, charges for  duplicate bills etc. which are incidental, ancillary or integral to the supply  of transmission and distribution of electricity by transmission and  distribution utilities to their consumers, when&nbsp; provided as a composite  supply. GST for the past period to be&nbsp;regularised&nbsp;on&nbsp;<em>&#8216;as is  where is&#8217;<\/em>&nbsp;basis.<\/div>\n<\/li>\n<\/ul>\n<p><strong>B. Measures  for facilitation of trade<\/strong><\/p>\n<p align=\"justify\">1. Procedure  and conditions for waiver of interest or penalty or both,&nbsp;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:<\/p>\n<p align=\"justify\">The&nbsp;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&nbsp; 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&nbsp;section 128A of the CGST Act. The Council also  recommended the issuance of a circular to clarify various issues related to  availment of&nbsp;waiver of interest or penalty or both&nbsp;as per section  128A of CGST Act. The Council also recommended that&nbsp;section 146 of Finance  (No. 2) Act, 2024, which provides for insertion of section 128A in CGST Act,  2017, may be notified with effect from 01.11.2024.<\/p>\n<p align=\"justify\">2. Providing  a mechanism for implementation of newly inserted sub-section (5) and  sub-section (6) in section 16 of CGST Act, 2017:<\/p>\n<p align=\"justify\">The  GST Council recommended that&nbsp;section 118 and 150 of the Finance (No. 2)  Act, 2024, which provides for insertion of sub-section (5) and sub-section (6)  in section 16 of CGST Act, 2017 retrospectively with effect from 01.07.2017,  may be notified at the earliest.\n  <\/p>\n<p align=\"justify\">The  Council also recommended that a special procedure for rectification of orders  may be notified under section 148 of the CGST Act, to be followed by the class  of taxable persons, against whom any order under section 73 or section 74 or  section 107 or section 108 of the CGST Act has been issued confirming demand  for wrong availment of input tax credit on account of&nbsp; contravention of  provisions of sub-section (4) of section 16 of the CGST Act, but where such  input tax credit is now available&nbsp;as per the provisions  of&nbsp;&nbsp;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.<\/p>\n<p align=\"justify\">3. 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:<\/p>\n<p align=\"justify\">The  GST Council&nbsp; recommended to clarify that where the inputs were initially  imported without payment of integrated tax and compensation cess by availing  benefits under Notification No. 78\/2017-Customs dated 13.10.2017 or  Notification No. 79\/2017-Customs dated 13.10.2017, but IGST and compensation  cess on such imported inputs are subsequently paid, along with applicable  interest, and the Bill of Entry in respect of the import of the said inputs is  got reassessed through the jurisdictional Customs authorities to this effect,  then the IGST paid on exports, refunded to the said exporter shall not be  considered to be in contravention of provisions of sub-rule (10) of rule 96 of  CGST Rules.\n  <\/p>\n<p align=\"justify\">Further,  considering the difficulty being faced by the exporters due to restriction in  respect of refund on exports, imposed vide rule 96(10), rule 89(4A) &amp; rule  89(4B) of CGST Rules, 2017, in cases where benefit of the specified  concessional\/ exemption notifications is availed on the inputs, the Council recommended  to prospectively omit rule 96(10), rule 89(4A) &amp; rule 89(4B) from CGST  Rules, 2017. This will simplify and expedite the procedure for refunds in  respect of such exports.<\/p>\n<p align=\"justify\">4. Issuance  of clarifications through the circulars to remove ambiguity and legal disputes  in certain issues:<\/p>\n<p align=\"justify\">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:<\/p>\n<div align=\"justify\">\n<ul>\n<li>Clarification on the Place of Supply of  advertising services provided by Indian advertising companies to foreign  entities.<\/li>\n<li>Clarification regarding availability of Input  Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.<\/li>\n<li>Clarification on Place of Supply of data hosting  services provided by service providers located in India to cloud computing  service providers located outside India.<\/li>\n<\/ul>\n<\/div>\n<p align=\"justify\">5. The  Council also recommended amendments in some other provisions of CGST Rules,  2017.<\/p>\n<p><strong>C. Other  measures:<\/strong><\/p>\n<p align=\"justify\">1. B2C  E-invoicing:<br \/>\n  The  GST Council recommended roll out of a pilot for B2C e-Invoicing, following the  successful implementation of e-invoicing in the B2B sector. The Council  recognized potential benefits of e-invoicing in retail, such as improved  business efficiency, environmentally friendly, cost efficiency to the business,  etc.<br \/>\n  It  would also provide an opportunity to the retail customers to verify the  reporting of the invoice in the GST return. The pilot will be rolled out on  voluntary basis in selected Sectors and States.<\/p>\n<p align=\"justify\">2. Invoice  Management System and new ledgers:<br \/>\n  The  Council also took note of the agenda on the enhancements being made to the  existing GST return architecture. These enhancements include the introduction  of a Reverse Charge Mechanism (RCM) ledger, an Input Tax Credit Reclaim ledger  and an Invoice Management System (IMS). Taxpayers would be given the  opportunity to declare their opening balance for these ledgers by 31st&nbsp;October  2024.\n  <\/p>\n<p align=\"justify\">IMS  will allow the taxpayers to accept, reject, or to keep the invoices pending for  the purpose of availment of Input Tax Credit. This will be an optional facility  for taxpayers to reduce errors in claiming input tax credit and improve  reconciliation. This is expected to reduce notices issued on account of ITC  mismatch in the returns.<\/p>\n<p>Annexures<br \/>\n  1. <a href=\"https:\/\/klickongstworld.com\/uploads\/PIB2053233.pdf\">Press release<\/a><br \/>\n  2. <a href=\"https:\/\/www.youtube.com\/live\/BflR2zEefro?si=LWqirlbYA_hnsMwP\">Press  conference link<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>2024\/09\/1009.jpg<\/p>\n","protected":false},"author":1,"featured_media":10065,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/10064"}],"collection":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/comments?post=10064"}],"version-history":[{"count":5,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/10064\/revisions"}],"predecessor-version":[{"id":10070,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/10064\/revisions\/10070"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media\/10065"}],"wp:attachment":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media?parent=10064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/categories?post=10064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/tags?post=10064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}