54th GST Council Meet Exempts Grants For Research & Reduced Rates On Specific Items
Out of the several indispensable decisions taken at the 54th GST Council meeting, some of the major items related to rate reduction on several items and formation of two new Group of Ministers (GoMs) to holistically look into the issues pertaining to GST on the life insurance and health insurance, as well as a committee to study Compensation Cess issue.The Union Finance Minister Mrs....
Out of the several indispensable decisions taken at the 54th GST Council meeting, some of the major items related to rate reduction on several items and formation of two new Group of Ministers (GoMs) to holistically look into the issues pertaining to GST on the life insurance and health insurance, as well as a committee to study Compensation Cess issue.
The Union Finance Minister Mrs. Nirmala Sitharaman announces that GoM on rate rationalisation will meet soon, and two status reports were submitted on Real estate & Online gaming/Casino.
Going further, the GST Council cuts GST rates on Specified cancer drugs from 12% to 5%, on Namkeen items & metal scraps from 18% to 12%, on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways at 28%, on Car and Motor cycle seats from 18% to 28%, on Transport of passengers by helicopters at 5%, on charter of helicopter at 18%, and exempted Flying training courses, with prospective operation.
Also, in a major relief to research institutions including IITs, the GST Council has exempted research institutions, specifically State affiliated universities and institutions or those established by Central or State laws or those which have obtained income tax exemption u/s 35 of Income Tax Act on grants for research and development, from GST on research grants received both from public and private parties.
In addition to this, the Committee of Secretaries has been formed to finalise the way forward for IGST vis-a-vis negative balance to be recovered from States.
GST rate cut/exemption for medical/health insurance referred to GoM that will submit its report by October end, so as to enable GST Council to take a final call on exemption/rate reduction in its November meeting.
The further minutes of GST Council meeting, shared by the Revenue Secretary includes:
1. Bringing renting of commercial property by registered person to unregistered person under RCM;
2. Clarification over PoS of data hosting centres;
3. Clarification over ITC on demo vehicles if bought by dealers;
4. Discussion over procedure for levy of interest & penalty for first four years;
5. Introduction of B2C e-invoicing on a voluntary basis.