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GST Council Meeting Highlights: All that Sitharaman, the Finance Minister and the GST Council finalized in the Monday meeting

Submitted by admin on September 15th, 2024

Union Finance Minister Nirmala Sitharaman presided over the 54th meeting of GST Council that also included the state’s finance ministers, they discussed numerous issues including levies on online gaming, and on rate restructuring of goods and services. Here is all that the panellists discussed.

• An annual status report on online gaming was presented to the council and the internet gambling revenue increased to 6.909 crore from ₹ 1,674 crore in the six months period.
• There are two new GoMs newly constituted to look one into the medical and health insurance and one for determining the utilization of compensation cess beyond March 2025.
• Members who are joining GoM for rate rationalization only for medical insurance purpose: They will have to give their report in October and this shall be taken during the committee meeting held in November.
• The GST Council has slashed the tax rate on cancer drugs from 12 percent to five percent recently.4
• The issue of negative balance of IGST that occurred between states to be investigated by a Committee of Officers and a report is required to be submitted by October.
• Council talked about Compensation cess the position, after adjusting for loans, is Rs 40,000 on cess The GoM for compensation cess will be formed on how to move forward on Compensation cess, said FM Nirmala Sitharaman.
• “The funds received for research to universities under the law of Centre, state governments, and those who received income tax exemption are free from GST,” added Sitharaman.
• Changes on GST invoice from October 1, New System to Manage.
• ‘Another important decision was taken to exempt import of services by an establishment of a foreign airlines company. There were some notices which were also reported in the media earlier from a related person or any of its establishments outside India when made without consideration’, added Revenue Secretary Sanjay Malhotra.
• Online transaction below Rs 2,000 still taxable under GST: Uttarakhand Finance Minister Prem Chand Aggarwal add that the issue on GST on online transactions below Rs 2,000 has been referred to the Fitment Committee for further discussion.
• The Helicopter services for religious travel was earlier charged at 18% GST but now the same has been revised to 5%.
• To with clarity exempted from GST are only those flying training courses which are approved by the DGCA and conducted by the FTOs only.
• Reverse Charge Mechanism (RCM) to be levied on supply of metal scrap by any unregistration person.
• Roof Mounted Package Unit (RMPU) ACs for Railways item falls under the chapter heading 8415 of the HSN code and are liable to GST of 28%.
• Increase rate on car seats up to 28%, from 18%
• Services provided by an unregistered person to a registered person was made liable for RCM to prevent revenue loss in case of renting of commercial property.
• Reduction in GST rates prospectively from 18% to 12% for the namkeens and savoury items.