54th GST Council Meeting

On 9th September, 2024, the 54th GST council was held in New Delhi and Honourable Finance Minister Mrs. Nirmala Sitaraman, announced many changes pertaining to goods and services tax(GST). Before going into the details, let us look at the meaning of GST council, composition of GST Council and the outcome of current GST Council Meeting.

1.       What is GST COUNCIL?

GST Council is the governing body of the GST having 33 members, out of which 2 members are of centre and 31 members are from 28 state and 3 Union territories with Legislature. The council

2.       Who are the member of GST Council?

                     i.            Union Finance Minister (as chairperson)

                   ii.            Union Minister of States in charge of revenue or finance (as member)

                  iii.            the ministers of states in charge of finance or taxation or other ministers as nominated by each states government (as member).

 

3.       What are the powers of GST Council?

Ø  GST rates and recommendations

Ø  Determines turnover thresholds for business to register

Ø  Formulates and revises GST Laws, guiding principles, levy mechanisms and compliance Requirements.

Outcome of 54TH GST Council meeting

Ø  GST for cancer treatment reduced from 12% to 5%.

Ø  GST rates for Savoury snacks reduced from 18% to12%

Ø  Services provided by government bodies, Universities and Colleges for research is exempt for GST.

Ø  GST rates on car and Motorcycle seats are increased from 18% to28%.

Ø  Taxpayers who have pending tax demands from previous years may be eligible for a waiver if they pay by March 31, 2025.

In a nutshell

Items

Old GST rates

New GST rates

Cancer Drugs

12%

5%

Savoury Snacks

18%

12%

Metal Scrap

18%

12%

Car and Motorcycle seats

18%

28%

Conclusion

This has reduced GST rates for three items of goods and research services by university and colleges are exempted and  GST rates for seat cover increased by 10%

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