Recommendations from the 54th GST Council Meeting

The GST Council met under the Chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman on 9th September 2024. Below are the key recommendations from the meeting:

Category	Recommendation	Details
Group of Ministers (GoM)	GoM on life and health insurance-related GST	Report to be submitted by end of October 2024
GoM to study compensation cess	Formation of GoM to study future of compensation cess
Research and Development	Exemption for R&D services provided by government entities	Applicable to entities notified under section 35 of the Income Tax Act, funded by government or private grants
Cancer Drugs	Reduction of GST on certain cancer drugs	GST reduced from 12% to 5% for Trastuzumab Deruxtecan, Osimertinib, and Durvalumab
B2C e-Invoicing	Pilot roll-out of B2C e-Invoicing	Voluntary pilot in selected sectors and states, improving business efficiency and reducing environmental impact
Namkeens and Extruded Products	GST reduction on extruded/expanded savoury products	Rate reduced from 18% to 12%; 5% remains for un-fried/un-cooked snack pellets
Metal Scrap	Introduction of Reverse Charge Mechanism (RCM) for metal scrap	RCM for unregistered-to-registered supply; 2% TDS applies in B2B transactions
Roof Mounted Package Unit (RMPU)	Clarification on GST for RMPU AC machines in railways	Classified under HSN 8415, attracting 28% GST
Car and Motorbike Seats	Clarification and adjustment of GST rates	GST for car seats (classified under 9401) raised from 18% to 28%, aligning with motorbike seats
Passenger Helicopter Transport	Clarification on GST for helicopter passenger transport	5% GST for seat-sharing; 18% for charter services
Flying Training Courses	GST exemption for DGCA-approved flying courses	Circular to clarify exemption status
Preferential Location Charges (PLC)	Clarification on PLC in construction services	Considered part of composite supply; past periods to be regularized
Affiliation Services	Clarification on GST for affiliation services	State/Central board services to Government Schools exempt; affiliation services for universities taxable at 18%
Import of Services	Exemption for import of services by foreign airline branches	Exempt if services are from related parties and without consideration
Commercial Property Renting	RCM on renting of commercial property by unregistered persons	To prevent revenue leakage
Ancillary Services by GTA	Clarification on composite supply for ancillary services by GTA	If part of transport service, considered composite supply; if separately invoiced, not composite
Electricity Services	Exemption of ancillary services related to electricity transmission and distribution	Exempt services include meter rental, testing fees, labor charges, etc.
Invoice Management System	Introduction of Reverse Charge Mechanism (RCM) ledger and Input Tax Credit Reclaim ledger	Optional facility to reduce errors and improve reconciliation of invoices

Note: These recommendations are subject to implementation through relevant notifications or amendments to GST laws, which will have the force of law.