Description

Source: PIB
Disclaimer: Copyright infringement not intended.
Context
The 54th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi.
Details
Read about GST: https://www.iasgyan.in/daily-current-affairs/goods-and-services-tax-gst
Read about GST Council: https://www.iasgyan.in/daily-current-affairs/gst-council-35
Key Recommendations
Changes/Clarifications in GST Tax Rates
- Namkeens & Extruded Savoury Products: GST reduced from 18% to 12% on extruded or expanded savoury/salted products, excluding un-fried/uncooked snack pellets.
- Cancer Drugs: GST on certain cancer drugs reduced from 12% to 5%.
- Metal Scrap: Reverse Charge Mechanism (RCM) introduced for unregistered-to-registered metal scrap supplies. TDS at 2% applicable for B2B transactions.
- Railway Air Conditioning Units: Roof Mounted Package Units (RMPU) for railways classified under HSN 8415, attracting 28% GST.
- Car & Motorcycle Seats: GST on car seats increased from 18% to 28%, aligning with motorcycle seats.
Services
- Life & Health Insurance: Group of Ministers (GoM) constituted to review GST on life and health insurance, with a report due by October 2024.
- Passenger Helicopter Transport: GST of 5% on helicopter passenger transport on a seat-sharing basis, with 18% GST for helicopter charters.
- Flying Training: DGCA-approved flying training courses exempt from GST.
- R&D Services: Exemption for government or institution-funded research and development services.
- Preferential Location Charges (PLC): PLC bundled with construction services will follow the same GST treatment as construction services.
- Affiliation Services: Clarified that affiliation services provided by educational boards like CBSE are taxable, with some exemptions for government schools.
Trade Facilitation & Compliance
- Waiver of Interest/Penalty: Rule 164 added for waiver of interest or penalty on tax demands for FYs 2017-18 to 2019-20.
- Amendments to Section 16: Special procedure for rectification of orders for wrong input tax credit (ITC) availability under Section 16 clarified.
- Exports & Refunds: Clarification on IGST refunds for exports and simplification of refund procedures.
Other Measures
- B2C E-invoicing: Pilot program for B2C e-invoicing in selected sectors to improve business efficiency and customer transparency.
- Invoice Management System: Introduction of a new system allowing taxpayers to accept, reject, or hold invoices, improving input tax credit reconciliation and reducing errors.
Sources:PIB

PRACTICE QUESTION
Q: Consider the following:
1. Cement
2. Casinos
3. Food in 5 star hotel
Which of the above is/are items under 28% GST slab rate?
a) 1 and 2
b) 2 and 3
c) None
d) 1, 2 and 3
Answer: d
Explanation:
List of Items Under 28% GST Slab Rate
Products
|
Services
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Air conditioners
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Ballet
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Cement
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Go-karting
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Washing machines
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Racecourse
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Lotteries (state-owned/authorised)
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Gambling
|
Paint
|
Casinos
|
Aerated beverages, Caffeinated beverages
|
Sports events (IPL, ISL, etc.)
|
Yachts, Aircrafts, Tobacco products, etc.
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Food and drinks (5-star hotels), etc.
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|