New Delhi: In a significant move, the 54th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, announced major tax rate reductions, including on cancer drugs and popular food items like namkeen. The meeting was attended by key ministers from various states and Union Territories, with discussions focusing on tax relief measures and compliance reforms.
Key Rate Reductions
Cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab will see a GST reduction from 12% to 5%, offering much-needed relief to patients battling cancer. Additionally, the GST rate on savoury snacks like namkeen, bhujia, and extruded food products was cut from 18% to 12%, aligning them with similar pre-packaged food items.
Tax Compliance and Trade Facilitation
The Council introduced a Reverse Charge Mechanism (RCM) for metal scrap supplies from unregistered to registered persons, aimed at preventing revenue leakage. In the service sector, a Group of Ministers (GoM) was set up to address issues related to GST on life and health insurance, with a report expected by October 2024.
B2C E-Invoicing Pilot and Other Reforms
A pilot program for B2C e-invoicing was announced, following the successful implementation of e-invoicing in the B2B sector. This initiative aims to improve transparency, business efficiency, and customer satisfaction. The Council also introduced new compliance measures, including a system for managing Reverse Charge Mechanism and Input Tax Credit, which is expected to reduce errors and tax filing discrepancies.
The decisions made during the meeting reflect the GST Council’s commitment to simplifying tax processes and offering relief to businesses and individuals alike.
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