54th GST Council Meeting Highlights: GoM Formed on Insurance Policies, Tax Rates on Cancer Drugs, Namkeens Slashed – News18

Abhishek Jain, indirect tax head & partner at KPMG, shares opinion on 54th GST Council Decisions:

Abhishek Jain, indirect tax head & partner, KPMG, said: “The GoM’s recommendation by end of October on the GST rate for health / life insurance will be one to watch closely. Specific sectors like automobile, etc. would keenly look forward to the decision on compensation cess and its fate. Another notable development is the proposed B2C e-invoicing, which, although voluntary, will be significant. It will be crucial to observe how businesses prepare for this change.”

Vivek Jalan, Partner at Tax Connect Advisory Services LLP, Speaks:

Vivek Jalan, partner at multidisciplinary pan-India consulting firm Tax Connect Advisory Services LLP: “The 53rd GST Council meeting was held immediately post the Union Budget and after a long haul of around six months and hence there were many pending item agenda items for The GST Council in this 54th GST Council meeting held today on 9th September 2024. Therefore it seems that the GST Council has taken up the agenda items in seriatim and cleared the earlier agenda items. A Long standing demand of Steel and other Metal Industry of levying Reverse Charge on Metal Scrap has been accepted by the 54th GST Council Meeting. This might solve the the threat of fake invoicing in this sector to a large extent. Several Universities had received GST notices on R&D grants received by them. It has been decided that GST will not apply to Universities with Income Tax Exemption or state and central government affiliated universities will be E-invoicing in the B2C category (although now recommendatory) may help the consumers also ensure that GST thereon has been paid by the supplier. Invoice Management System to be implemented from 1st October would help the recipients and suppliers in correcting the invoices and streamlining the flow of Credit. The long speculated GST on Medical and Health Insurance have been referred rightly to a group of ministers as there were many related issues like what happens to Corporate group insurance (which is a norm in the current times), in case insurance is taken by Residents Welfare Association, life insurance, etc and most important whether ITC would be available or not. The 55th GST Council’s Meeting in November 2024 would take a decision in the matter.”

Any Fund Even Coming from Private, Private Universities, Established by Centre, State Law Will be GST Exempt: FM

Seven institutions had received tax notices for GST on R&D funds. Any fund even coming from private, for private universities as well established by centre, state law, will be exempt from GST, says FM Nirmala Sitharaman

Any Fund Even Coming from Private, Private Universities, Established by Centre, State Law Will be GST Exempt: FM

Seven institutions had received tax notices for GST on R&D funds. Any fund even coming from private, for private universities as well established by centre, state law, will be exempt from GST, says FM Nirmala Sitharaman

GST Rates on Car Seats Hiked from 18% to 28%

Govt raises GST rates on car seats to 28% from 18%, says Revenue Secretary Sanjay Malhotra.

Section 11A to address retrospective tax demands will be used in rarest of rare occasions

Section 11A to address retrospective tax demands will be used in rarest of rare occasions. Circulars regarding it not discussed at this point of time, says Revenue Secretary.

GST Council Discusses if Medical Insurance Should be Introduced Only for Senior Citizens

The GST Council discussed if medical insurance should be introduced only for senior citizens, and will it make implementation difficult.

GST Council to Re-Examine the Issue of Tax on EV Charging Stations: Revenue Secretary

The GST Council will re-examine the issue of tax on EV charging stations, says Revenue Secretary Sanjay Malhotra.

Council did not discuss whether to exempt payment aggregators from paying tax on online payments, says revenue secretary

Revenue Secretary Sanjay Malhotra said the Council did not discuss whether to exempt payment aggregators from paying tax on online payments.

B2C e-Invoicing to Start on a Voluntary Basis Soon: 54th GST Council Meeting

Council approved to introduce B2C e-invoicing to facilitate consumers on voluntary basis in selective states. Necessary amendments will be made.

Committee of Secretaries on Integrated GST Will Submit Report by October, says FM

“A committee of secretaries will be formed to explain on how to take IGST forward. Today we have negative balance on IGST. The committee will be formed under additional secretary in revenue. There is excess IGST given to states will have to be retrieved. The modus operandi of IGST may be explained to states if needed. The committee will have officials from states and centre,” says FM Nirmala Sitharaman.

GST Rates on Cancer Drugs Reduced from 12% to 5%

GST rates on cancer drugs will be reduced further, complementing the earlier reduction in import duties.

The GST Council decided to reduce the tax rate on cancer drugs to 5 per cent from 12 per cent; on namkeen to 12 per cent from 18 per cent, says Finance Minister Nirmala Sitharaman.

GST on Select Snacks Reduced from 18% to 12%

GST on select snacks reduced from 18% to 12%.

Renting of commercials properties brought under reverse charge mechanism

Renting of commercials properties brought under reverse charge mechanism, says Revenue Secretary Sanay Malhotra.

GST Council Exempts Universities, Educational Establishements Established by Law of Center

Sitharaman said the GST Council has decided to exempt universities and educational establishements established by a law of Center or state or those which receive income tax from GST.

GST rate on namkeen reduced prospectively

GST rate on namkeen reduced prospectively.

Funds given for research to universities established by the law of Centre exempted from GST

Funds given for research to universities established by the law of Centre, state governments, and those who have obtained income tax exemption, are exempt from GST.

Compensation cess can be collected till March 2026 to repay back to back loans and service interest on it: FM

Compensation cess can be collected till March 2026 to repay back to back loans and service interest on it. By January 2026, we will be able to clear the loans, says FM Nirmala Sitharaman.

GoM on Health Insurance to Come Up with Report by End of October, Decision in November meet: FM

GoM on health insurance to come with a report by end of October, decision in November meet, says FM Nirmala Sitharaman.