The 54th GST Council meeting, chaired by the Union Finance Minister, Nirmala Sitharaman, was held on 9th September 2024. Several key decisions regarding changes in the GST rates on goods were taken during this meeting, with a focus on reducing tax rates on certain essential goods and bringing more clarity to the GST structure. Here’s a detailed overview of the GST rate changes that were announced for goods during this meeting.
These rate changes will be applicable from a date which will be given through separate GST notification
Click here to Get Detailed Press Release of 54th GST council Meeting
1. Reduced GST on Savoury Food Products
- Current Rate: 18%
- New Rate: 12%
- Details: The GST rate on extruded and expanded savoury food products has been reduced from 18% to 12%. This change, however, excludes un-fried or un-cooked snack pellets, which will continue to attract a GST of 5%. This reduction is aimed at making these food products more affordable and encouraging consumption.
2. GST Reduction on Cancer Drugs
- Current Rate: 12%
- New Rate: 5%
- Details: A significant GST rate reduction was introduced for certain life-saving cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. The new rate of 5% will provide relief to patients requiring these medications, reducing the overall cost burden on cancer treatment.
3. Reverse Charge Mechanism for Metal Scrap
- New Introduction:
- Details: A Reverse Charge Mechanism (RCM) will now be applicable to the supply of metal scrap by unregistered persons to registered dealers. This change aims to curb tax evasion and improve GST compliance in the metal scrap industry.
4. TDS on B2B Metal Scrap Supply
- New Rate: 2%
- Details: To streamline the taxation of the metal scrap sector, a new 2% TDS (Tax Deducted at Source) is introduced on the B2B (business-to-business) supply of metal scrap. This will be applicable when a registered person sells metal scrap to another registered person.
5. GST on Roof Mounted Package Unit (RMPU) for Railways
- New Rate: 28%
- Details: The GST on Roof Mounted Package Unit (RMPU) air conditioning machines used in railways has been set at 28%, classified under HSN 8415. This rate is in line with the tax levied on similar air conditioning machinery.
6. Increased GST on Car Seats
- Current Rate: 18%
- New Rate: 28%
- Details: The GST rate on car seats has been increased from 18% to 28%. This change brings the tax on car seats in alignment with the rate applicable on motorcycle seats, ensuring uniformity in the tax structure across similar products.
All other Changes are covered in below video
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