{"id":8292,"date":"2024-12-22T08:49:05","date_gmt":"2024-12-22T08:49:05","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=8292"},"modified":"2024-12-31T07:18:13","modified_gmt":"2024-12-31T07:18:13","slug":"recommendations-from-the-55th-gst-council-meeting","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/","title":{"rendered":"Recommendations from the 55th GST Council Meeting"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8080\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account-.jpg\" alt=\"GST bank account\" width=\"1280\" height=\"569\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account-.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--300x133.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--1024x455.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--768x341.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--800x356.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e00d4741f78\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e00d4741f78\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Recommendations_from_the_55th_GST_Council_Meeting\" title=\"Recommendations from the 55th GST Council Meeting\">Recommendations from the 55th GST Council Meeting<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Changes_in_GST_Rates\" title=\"Changes in GST Rates:\">Changes in GST Rates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Goods\" title=\"Goods:\">Goods:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Services\" title=\"Services:\">Services:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Exemptions_and_Clarifications\" title=\"Exemptions and Clarifications:\">Exemptions and Clarifications:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Measures_for_Trade_Facilitation_Other_Changes\" title=\"Measures for Trade Facilitation:\u00a0Other Changes:\">Measures for Trade Facilitation:\u00a0Other Changes:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Measures_for_Trade_Facilitation\" title=\"Measures for Trade Facilitation:\">Measures for Trade Facilitation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Streamlining_Compliance\" title=\"Streamlining Compliance:\">Streamlining Compliance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/recommendations-from-the-55th-gst-council-meeting\/#Pilot_Initiatives\" title=\"Pilot Initiatives\">Pilot Initiatives<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Recommendations_from_the_55th_GST_Council_Meeting\"><\/span><span style=\"color: #000080;\"><strong>Recommendations from the 55th GST Council Meeting<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The GST Council, chaired by Finance Minister Nirmala Sitharaman, made significant recommendations aimed at streamlining GST operations, reducing tax rates, and facilitating trade compliance. These recommendations provided by the GST Council cover a wide range of updates and policy changes, aiming to revise tax rates, streamline compliance processes, and facilitate trade. These include reductions and exemptions on specific goods and services, clarification on GST treatment for various scenarios, and measures for compliance improvements. These measures aim to simplify GST, foster trade, and provide clarity to reduce disputes. Feel free to ask if you want more detail on any specific point. Here are some key points:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Changes_in_GST_Rates\"><\/span><span style=\"color: #000080;\"><strong>Changes in GST Rates:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8302\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16.jpg\" alt=\"55th GST COUNCIL MEETING RECOMMENDATIONS\" width=\"1139\" height=\"1139\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16.jpg 1139w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16-1024x1024.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16-768x768.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/photo_2024-12-25_18-13-16-800x800.jpg 800w\" sizes=\"(max-width: 1139px) 100vw, 1139px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Goods\"><\/span><span style=\"color: #000080;\"><strong>Goods:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Namkeens and Savory Food Products: GST rate reduced from 18% to 12% for extruded\/expanded savory snacks (excluding un-fried\/un-cooked snack pellets).<\/li>\n<li>Cancer Drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab rates reduced from 12% to 5%.<\/li>\n<li>Metal Scrap: Reverse Charge Mechanism introduced for supplies by unregistered persons.<\/li>\n<li>TDS of 2% on B2B supplies by registered persons.<\/li>\n<li>Roof Mounted Air Conditioning for Railways: Classified under HSN 8415, attracting 28% GST.<\/li>\n<li>Car and Motorcycle Seats: Uniform GST rate of 28% applied prospectively to car seats for parity with motorcycle seats. Used Cars and Electric Vehicles (EVs) : GST increased for used cars, including small petrol, diesel, and electric vehicles, from 12% to 18%.<\/li>\n<li>Fortified Rice Kernels : GST reduced from 18% to 5%.<\/li>\n<li>Autoclaved Aerated Concrete (ACC) Blocks : For ACC blocks containing more than 50% fly ash: GST reduced from 18% to 12%.<\/li>\n<li>Apparel Proposals (from the GoM) : Garments priced up to \u20b91,500: 5% GST, Garments priced above \u20b910,000: 28% GST.<\/li>\n<li>Packaged Drinking Water ; A proposal to reduce GST to 5% is under consideration.<\/li>\n<li>Bicycles priced under \u20b910,000: Proposed to attract 5% GST<\/li>\n<li>Popcorn Taxation : Unpackaged salted or spiced popcorn: 5% GST, Pre-packaged popcorn: 12% GST, Caramel-coated popcorn: 18% GST<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-8298\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-.png\" alt=\"GST\" width=\"739\" height=\"1269\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-.png 301w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST--175x300.png 175w\" sizes=\"(max-width: 739px) 100vw, 739px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Services\"><\/span><span style=\"color: #000080;\"><strong>Services:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Life and Health Insurance: A Group of Ministers (GoM) will study GST implications and submit a report by October 2024.<\/li>\n<li>Passenger Transport by Helicopters: GST set at 5% for seat-share basis; charter services to remain at 18%.<\/li>\n<li>Flying Training Courses: Exempted from GST for DGCA-approved training.<\/li>\n<li>Research Services: Exempt for government entities, research associations, and institutions funded by grants.<\/li>\n<li>Preferential Location Charges (PLC): Treated as part of composite supply for construction services.<\/li>\n<li>Educational Board Affiliation: Exemption provided to state\/central boards prospectively; others to attract 18% GST.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Exemptions_and_Clarifications\"><\/span><span style=\"color: #000080;\"><strong>Exemptions and Clarifications:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Vouchers Transactions: GST exempted for voucher transactions as they are not considered a supply of goods or services. Provisions related to vouchers have been simplified.<\/li>\n<li>Motor Vehicle Accident Fund Contributions: Exemption granted on contributions made by general insurance companies from third-party motor vehicle premiums to the Motor Vehicle Accident Fund.<\/li>\n<li>Agricultural Supplies: Fresh green or dried pepper and raisins supplied by agriculturists are exempt from GST. Autoclaved Aerated Concrete (ACC) blocks with over 50% fly ash content attract 12% GST.<\/li>\n<li>LRSAM System: IGST exemption extended for assembly\/manufacture-related systems, sub-systems, and equipment.<\/li>\n<li>IAEA Inspection Imports: Exempted IGST on specific equipment and consumables imported by the International Atomic Energy Agency (IAEA) inspection teams.<\/li>\n<li>Clarifications on Pre-Packaged and Labelled Goods: Amendments approved to the definition of &#8220;pre-packaged and labelled&#8221; items for retail sale to address confusion and ensure clarity for all goods.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Measures_for_Trade_Facilitation_Other_Changes\"><\/span><span style=\"color: #000080;\"><strong>Measures for Trade Facilitation:\u00a0<\/strong><strong>Other Changes:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Old and Used Vehicles: GST on margin, increased to 18% for specified vehicle categories. For those interested in understanding who is impacted and required to pay GST on the sale of old cars, CNBC provides a simplified explanation.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8324\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev-.jpg\" alt=\"GST on used Old and Used Vehicles\" width=\"911\" height=\"1280\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev-.jpg 911w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev--214x300.jpg 214w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev--729x1024.jpg 729w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev--768x1079.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/GST-on-Ev--800x1124.jpg 800w\" sizes=\"(max-width: 911px) 100vw, 911px\" \/><\/p>\n<ul>\n<li>ACC Blocks: 12% GST if fly ash content &gt;50%.<\/li>\n<li>Agricultural Products: Clarified no GST on pepper and raisins by agriculturists.<\/li>\n<li>Pre-Packaged Goods Definition: Amended for GST applicability.<\/li>\n<li>Popcorn GST: 5% or 12% based on packaging; 18% for caramel varieties.<\/li>\n<li>RBI Payment Aggregators: Clarified as GST exempt.<\/li>\n<li>Bank\/NBFC Penalties: Not subject to GST.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Measures_for_Trade_Facilitation\"><\/span><span style=\"color: #000080;\"><strong>Measures for Trade Facilitation:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Amendments in Schedule III: Supplies in SEZ\/FTWZ treated as non-taxable.<\/li>\n<li>Voucher Taxability: Clarified as neither supply of goods nor services; exemptions for principal-to-principal transactions.<\/li>\n<li>Clarifications on ITC and Annual Returns: Address ambiguities on ITC claims and late fee waivers for annual returns up to 2022-23.<\/li>\n<li>Compensation Cess: Formation of a GoM to study its future.<\/li>\n<li>Electricity Supply Services: Exempted if incidental to transmission\/distribution services by utilities.<\/li>\n<li>Reverse Charge for Renting: Renting of commercial properties by unregistered persons to registered entities brought under RCM.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8321\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/APPLICABILITY-OF-GST-ON-RENT.jpg\" alt=\"APPLICABILITY OF GST ON RENT\" width=\"893\" height=\"637\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/APPLICABILITY-OF-GST-ON-RENT.jpg 893w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/APPLICABILITY-OF-GST-ON-RENT-300x214.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/APPLICABILITY-OF-GST-ON-RENT-768x548.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/12\/APPLICABILITY-OF-GST-ON-RENT-800x571.jpg 800w\" sizes=\"(max-width: 893px) 100vw, 893px\" \/><\/p>\n<ul>\n<li>Film Distribution: GST liability for distributors\/sub-distributors before October 2021 to be regularized.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Streamlining_Compliance\"><\/span><span style=\"color: #000080;\"><strong>Streamlining Compliance:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Track and Trace Mechanism: Enabling provision for monitoring commodities using unique markings.<\/li>\n<li>Online Service Supply: requirement for correct state details for unregistered recipients.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Pilot_Initiatives\"><\/span><span style=\"color: #000080;\"><strong>Pilot Initiatives<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>B2C e-Invoicing: Rollout of pilot projects to test feasibility.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Recommendations from the 55th GST Council Meeting The GST Council, chaired by Finance Minister Nirmala Sitharaman, made significant recommendations aimed at streamlining GST operations, reducing tax rates, and facilitating trade compliance. These recommendations provided by the GST Council cover a wide range of updates and policy changes, aiming to revise tax rates, streamline compliance processes, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[144],"tags":[918],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8292"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=8292"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8292\/revisions"}],"predecessor-version":[{"id":8327,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8292\/revisions\/8327"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=8292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=8292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=8292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}