The Union Finance Minister Nirmala Sitharaman chaired the 54th meeting of the GST Council today (9th September 2024) at Sushma Swaraj Bhawan in New Delhi.
The Union Minister of State for Finance M.P.P. Chaudhary, along with the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana also participated in the meeting.
The GST Council has announced several significant updates to tax rates and classifications. Effective immediately, the GST rate for extruded or expanded products, including savoury or salted items (excluding un-fried or uncooked snack pellets produced through extrusion), classified under HS 1905 90 30, will be reduced from 18% to 12%.
This adjustment aligns the tax rate with that applied to similar ready-to-consume edible preparations like namkeens and bhujia, which fall under HS 2106 90. However, the GST rate of 5% will continue for un-fried or uncooked snack pellets manufactured through extrusion. It is important to note that this reduced rate of 12% will be applied prospectively.
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Further, the GST rate on specific cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, decreased from 12% to 5%. This reduction aims to make these essential treatments more affordable for patients.
The Council has also introduced a Reverse Charge Mechanism (RCM) for the supply of metal scrap from unregistered to registered persons. The supplier must obtain registration once the threshold limit is crossed, and the recipient will be liable to pay tax under RCM even if the supplier remains below the threshold. Additionally, a Tax Deducted at Source (TDS) of 2% will apply to metal scrap supplies in B2B transactions.
Further clarifications include the classification of Roof Mounted Package Unit (RMPU) air conditioning machines for railways under HSN 8415, attracting a GST rate of 28%. Additionally, the GST rate for car seats, classified under HS 9401, will be increased from 18% to 28%, bringing it in line with the tax rate for motorcycle seats.
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