54th GST Council Meeting

Current Context: The 54th GST Council Meeting was held on September 9, 2024, chaired by Finance Minister Nirmala Sitharaman.

• Here are some key highlights and decisions from the meeting:
• Tax Rate Clarifications:
• Namkeens and Savoury Food Products: The GST rate of 5% will continue on un-fried or un-cooked snack pellets.
• Cancer Drugs: Specific cancer drugs have been given GST exemptions.
• Metal Scrap: Introduction of Reverse Charge Mechanism (RCM) on the supply of metal scrap by unregistered persons to registered persons.
• Car and Motorcycle Seats: GST rate on car seats has been increased from 18% to 28%.
• Services:
• Life and Health Insurance: The GST rate remains at 18%.
• Flying Training Courses: Approved flying training courses conducted by DGCA-approved Flying Training Organizations (FTOs) are exempt from GST.
• Transport of Passengers by Helicopters: Regularization of GST for past periods on an ‘as is where is’ basis.
• E-Invoicing and ITC:
• E-invoicing is now applicable to B2B transactions for registered persons with a turnover of over ₹5 crore.
• Introduction of the Invoice Management System, Reverse Charge Mechanism (RCM) ledger, and an Input Tax Credit (ITC) Reclaim ledger in the GST Portal.
• Compensation Cess:
• Extension of the compensation cess on luxury and demerit goods till March 2026.
• These changes aim to provide clarity and relief for businesses and individuals, facilitating smoother GST compliance and trade.

Question:

1 What is the GST rate on un-fried or un-cooked snack pellets after the 54th GST Council Meeting?

• A) 12%
• B) 18%
• C) 5%
• D) 28%

Answer: C) The GST rate of 5% continues to apply to un-fried or un-cooked snack pellets, providing clarity on taxation for these products.