In a significant move, the 54th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, took place in New Delhi today. The meeting, which also saw participation from Union Minister of State for Finance Pankaj Chaudhary and various state representatives, focused on revising GST tax rates and streamlining compliance measures.
Check key recommendations from the meeting include: Reduction in GST rates for specific goods
1. Namkeens and Extruded Snacks: The GST rate for extruded or expanded savoury snacks, classified under HS 1905 90 30, will be reduced from 18% to 12%. This change aligns the rate with that of similar pre-packaged and labelled products. The 5% rate will continue for un-fried or un-cooked snack pellets, manufactured through process of extrusion. The reduced rate will be applicable prospectively.
2. Cancer drugs: The GST rate on cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab will be reduced from 12% to 5%, providing relief to patients.
3. Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways: These machines will now be classified under HSN 8415 with a GST rate of 28%.
4. Introduction of Reverse Charge Mechanism on Metal Scrap: A reverse charge mechanism will be applied to the supply of metal scrap from unregistered to registered persons. Suppliers must register once they surpass the threshold limit, while recipients will be responsible for paying tax under RCM. Additionally, a TDS of 2% will be imposed on the supply of metal scrap in B2B transactions.
5. Revised GST Rates for Car and Motorcycle Seats: The GST rate for car seats, classified under HS 9401, will increase from 18% to 28%. This change aims to create parity between car seats and motorcycle seats, which already attract a 28% rate. The new rate will be applied prospectively.
