As per the Press Information Bureau, here are the following key highlights from the 54th GST Council meeting on 09th September 2024

• • Exemption for R&D Educational Institutions
    GST Council recommended exempting the supply of research and development services by government entities or research associations, universities, colleges, or other institutions notified under section 35 of the Income Tax Act when using government or private grants.
  • Reduced GST Rates on Cancer Drugs
    The Council recommended reducing GST rates on certain cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, from 12% to 5%. 
  • B2C E-Invoicing Pilot
    GST Council has recommended implementation of e-invoicing for B2C transactions in a phased manner to prevent cases of false invoicing. This will allow customers to verify their invoices before reporting them while filing GST Returns. Until now, e-invoicing was applicable to B2B transactions for a registered person with a turnover of over Rs.5 crore. 
  • Enhancements to the New Invoice Management System
    Post the introduction of the Invoice Management System, the GST Council proposed other enhancements to the current GST return filing mechanism, such as a Reverse Charge Mechanism (RCM) ledger and an Input Tax Credit Reclaim ledger. 
  • Status Report on Rate Rationalisation and Real Estate
    The status reports were duly submitted by the Group of Ministers (GoM) formed on rate rationalisation and real estate, respectively, on the basis of which further discussions regarding the above two subjects will be held in upcoming council meetings. 
  • No Changes to GST On Online Gaming
    No changes were announced to GST on Online Gaming. Therefore, as decided in the 50th GST Council meeting held in October 2023, 28% of the GST stands applicable to casinos, games, and racecourses. The status was due to be reviewed after six months of the implementation. The current revenue from Online Gaming had increased by 412% in 6 months to Rs. 6,909 crores from Rs.1,349 crores before the notification was issued, whereas the revenue in case of casinos was increased by 30%, i.e., from Rs.164 crores to Rs. 214 crores. 
  • GoM on Life and Health Insurance
    The GST Council recommended the formation of a Group of Ministers (GoM) to study GST related to life and health insurance, which is an extension of the GoM on Rate Rationalisation. The newly formed GoM is required to submit the report by the end of October 2024. Therefore, the GST Council maintained the status quo by keeping the GST rate at 18% on life and health insurance and deferring it to the next meeting. The next GST Council Meeting will happen in November 2024. 
  • Committee of Secretaries for IGST
    A Committee of Secretaries under the chairmanship of the additional secretary revenue will be formed to explain and decide on the future of IGST and how to proceed with the same. Given a negative balance in IGST, retrieval process of the excess IGST passed on to some states will be studied. This report has to be submitted by the end of October 2024.
  • GoM on Compensation Cess
    Finance Minister Nirmala Sitharaman stated that the total cess collected amounted to ₹8,66,706 crore. Additionally, she announced the formation of a Group of Ministers (GoM) to investigate and recommend a path forward for the compensation cess, which is scheduled to expire in March 2026.
    

    
    GST Rate Changes/Clarifications from 54th GST Council Meetings

  • Goods/Service	HSN/SAC Code	Current Rate	Recommended Rate	Remarks
    Cancer drugs like Trastuzumab Deruxtecan,  Osimertinib and Durvalumab	9804	12%	5%	To make the cancer treatment more affordable
    Namkeens and Extruded/Expanded Savoury food products	19059030	18%	12%	The change will be applied prospectively
    Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways	8415		28%
    Car and Motor cycle seats	9401	18%	28%	The change will be applied prospectively
    Transport of passengers by helicopters	9964	18%	5%

    54th GST Council Meeting in 2024: New Measures
    => B2C E-invoicing 

  • The GST Council recommended a pilot rollout of B2C e-invoicing, building on the successful implementation of B2B e-invoicing. 

  • The Council highlighted potential benefits for retail, such as increased efficiency, environmental friendliness, and cost savings. 

  • Retail customers would have the opportunity to verify invoice reporting in GST returns. 

  • The pilot will be voluntary and implemented in selected sectors and states 
    
    => Invoice Management System and New Ledgers
  • The Council noted enhancements to the GST return architecture, including an RCM ledger, an Input Tax Credit Reclaim ledger.

• • Taxpayers will have until October 31, 2024, to declare their opening balances for these ledgers.

• • IMS will enable taxpayers to accept, reject, or hold invoices for input tax credit purposes.

• This optional feature aims to reduce input tax credit errors and improve reconciliation, potentially leading to fewer notices due to ITC mismatches in returns.