54th GST council meeting

The 54th meetings of the Goods and Services Tax (GST) Council took place in New Delhi, chaired by Finance Minister Nirmala Sitharaman. The council focused on the rejigging of tax rates on essentials like food items, cancer drugs and health insurance.

India's GST Policy Changes

• GoM set up to view GST rates on health insurance, cancer drugs and snacks.
• Reduction of GST on cancer drugs from 12% to 5%, including high-cost drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
• Trastuzumab Deruxtecan: ?22,300 / vial Osimertinib: ?204,000 for 10 tablets Durvalumab:?157,000 per vial
• Likely testimony on: Savoury Snacks (Namkeens) from 18% to 12%, and taxed at 5% not fried variants.
• Upward revisions in GST for specific items: For Car and Motorcycle Seats from 18% to 28%, helicopter charters at 18 %, passenger transportation via helicopters at 5%.
• Tax Payer Duties: Reverse Charge Mechanism suggested for Rentals from Commercial Properties and transactions of Metal Scrap
• Note that interest waiver for pendency of tax demands by March 31, 2025.
• Quantification of revenue loss from businesses not registered to be carried out in one year, B2C e-invoicing pilot project, a new Invoice Management System for Delhi and GoM on Insurance by October 2024.