The 54th GST Council meeting was held on 9 September 2024 in New Delhi chaired by Hon’ble Finance Minister Nirmala Sitharaman wherein several significant recommendations were introduced aimed at reforming the GST framework. The GST Council made a few recommendations relating amongst others to changes in GST tax rates, provide relief to individuals, measures for facilitation of trade and measures for streamlining compliances in GST.

Changes / Clarifications in GST Rates

Goods

1. Namkeens and Extruded/Expanded Savoury food products:

The GST rate of extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion) has been proposed to be reduced from 18% to 12% prospectively.

2. The GST rate on Cancer Drugs (Trastuzumab Deruxtecan, Osimertinib and Durvalumab) to be reduced from 12% to 5%.

3. The GST Council has proposed to introduce Reverse Charge Mechanism (‘RCM’) on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold. Also, a TDS of 2% will be applicable on supply of metal scrap by registered person in B2B supply.

4. The Council has clarified that Roof Mounted Package Unit (‘RMPU’) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28%.