GST Council held its 54th meeting at New Delhi. In the meeting, GST Council has recommended changes related to GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
Key recommendation of the GST council are:
A. Changes in GST rates of goods and services
1. GST to be levied @12% on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets manufactured through process of extrusion).
2. GST @5% to be levied on the following cancer drugs:
Trastuzumab Deruxtecan
Osimertinib
Durvalumab
3. GST on car seats of motor cars to be levied @28% instead of 18%.
B. Exemption from GST
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 are to be exempted from GST, when provided as a composite supply. GST for the past period to be regularised on ‘as is where is’ basis.
C. Measures pertaining to Law and Procedures
1. Introduction of B2C e-invoicing for improved business efficiency, environmentally friendly, cost efficiency to the business to be rolled out on voluntary basis in selected sectors and States.
2. Introduction of 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 October 2024. Through IMS taxpayers will be able to accept, reject, or to keep the invoices pending for the purpose of availment of Input Tax Credit.
3. New Rule 164 to be inserted 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 pertaining to previous F.Y.
4. Inputs which were initially imported without payment of integrated tax and compensation cess, 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 refund provisions.
D. Clarification to be issued in respect of
1. Clarification on the Place of Supply of advertising services provided by Indian advertising companies to foreign entities.
2. Clarification regarding availability of Input Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.
3. Clarification on Place of Supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
For further details please refer the attached document for ease of reference.
Source: Press Information of Bureau
