Note4Students
From UPSC perspective, the following things are important :
Prelims level: 54th meeting of GST Council
Why in the News?
The 54th GST Council meeting, chaired by Union Finance Minister was held recently.
Recommendations from the 54th GST Council Meeting:
GST Rate Changes for Goods |
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| Namkeens and Savory Products | GST on extruded/expanded savoury products reduced from 18% to 12%; 5% GST on un-fried or uncooked snack pellets continues. |
| Cancer Drugs | GST on cancer drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab reduced from 12% to 5%. |
| Metal Scrap | Reverse Charge Mechanism (RCM) introduced for metal scrap supplies by unregistered persons; 2% TDS applied on B2B metal scrap supplies by registered persons. |
| RMPU Air Conditioning Machines | RMPU air conditioning machines for railways classified under HSN 8415, attracting a 28% GST rate. |
| Car and Motorcycle Seats | GST on car seats (HSN 9401) increased from 18% to 28%, aligning with the rate for motorcycle seats. |
GST Rate Changes for Services |
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| Life and Health Insurance | Group of Ministers (GoM) to be constituted to study GST issues related to life and health insurance. Report expected by October 2024. |
| Transport by Helicopters | GST on passenger transport by helicopters (seat share basis) set at 5%; 18% GST continues for charter helicopter services. |
| Flying Training Courses | DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) will be exempt from GST. |
| Preferential Location Charges | Preferential Location Charges (PLC) in construction services to be taxed as composite supply. |
| Affiliation Services | Affiliation services provided by boards like CBSE taxable; services provided to government schools by state/central boards will be exempt. |
| Import of Services by Branches | Import of services by foreign airlines’ branch offices from related persons will be exempt from GST if made without consideration. |
Compliance Measures |
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| B2C E-invoicing | Pilot project for B2C e-invoicing introduced to improve business efficiency and environmental sustainability. |
| Invoice Management System (IMS) | Invoice Management System to allow taxpayers to accept, reject, or keep invoices pending for claiming Input Tax Credit (ITC). |
| Waiver of Interest/Penalty | Special procedure to waive interest/penalty for tax demands from FY 2017-18, 2018-19, and 2019-20 under section 73 of CGST Act. |
| Clarifications via Circulars | Clarifications on place of supply for advertising services, ITC on demo vehicles, and place of supply for data hosting services to be issued. |
PYQ:[2018] Consider the following items: 1. Cereal grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax)? (a) 1 only (b) 2 and 3 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4 |
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