54th GST Council Meeting highlights: What's getting cheaper and what’s getting pricier
Summary
TLDRIn the 54th GST Council meeting, Finance Minister Nirmala Sitharaman announced significant changes affecting consumer wallets. The GST on extruded savory snacks is reduced to 12%, aligning with similar products. Cancer drugs see a decrease from 12% to 5%. However, car seat GST rises to 28%. Life and health insurance may undergo changes as a new committee reviews GST issues. Approved flying training courses are now GST exempt, and R&D services by specific institutions are also exempt. Charges for prime property locations will be taxed at the same rate as construction services. Commercial property renters may now bear GST if the landlord isn't registered. For logistics, ancillary services with a consignment note will be taxed as part of the main service.
Takeaways
- 🍿 **Snack Lovers Rejoice**: The GST on extruded or expanded savory snacks is reduced from 18% to 12%, aligning with other snacks like namkin and buia.
- 💊 **Cancer Treatment Relief**: Life-saving cancer drugs see a significant GST reduction from 12% to 5%.
- 🚗 **Car Seat Cost Increase**: GST on car seats increases from 18% to 28%, matching the rate for motorcycle seats.
- 🛫 **Helicopter Rides Taxed**: GST for seat share helicopter rides is set at 5%, while charter flights remain at 18%.
- 👨✈️ **Pilot Training Boost**: Approved flying training courses are now exempt from GST, easing the financial burden for aspiring pilots.
- 🔬 **R&D Services Exemption**: R&D services provided by specific institutions are exempt from GST, encouraging innovation.
- 🏡 **Property Location Tax**: Charges for better locations or PLCs in property purchases are taxed at the same rate as the construction service.
- ✈️ **Foreign Airlines Import Tax**: GST exemption for foreign airlines with branch offices importing services remains, with past issues sorted based on current guidelines.
- 🏢 **Commercial Property Rent GST Shift**: If the landlord isn't registered, GST on commercial property rent will now be paid by the tenant.
- 🚚 **Logistics Service Tax Clarity**: Ancillary services offered by a Goods transport agency with a consignment note will be taxed as part of the main transportation service; separate services face a different GST rate.
Q & A
What was the purpose of the 54th GST Council meeting chaired by Finance Minister Nirmala Sitharaman?
-The purpose of the 54th GST Council meeting was to discuss and implement changes in the Goods and Services Tax (GST) rates, which could affect the financial implications for various goods and services.
What is the new GST rate for extruded or expanded savory snacks?
-The new GST rate for extruded or expanded savory snacks has been reduced from 18% to 12%.
How does the GST change for savory snacks affect other similar products like namkin and buia?
-The reduction in GST for savory snacks aligns their tax rate with other similar products like namkin and buia, which are already taxed at 12%.
What is the current GST rate for unfried snack pellets?
-The GST rate for unfried snack pellets remains unchanged at 5%.
What is the significant change in GST for life-saving cancer drugs?
-The GST on some life-saving cancer drugs has been significantly reduced from 12% to 5%.
Why might upgrading car seats become more expensive after the GST changes?
-The GST on car seats has increased from 18% to 28%, making it more expensive for those planning to upgrade their vehicle's interior.
What is the proposed action for the GST-related issues in life and health insurance?
-A new committee will be set up to look into the GST-related issues for life and health insurance, with updates to be provided later.
What is the GST rate for seat share helicopter rides?
-The GST for seat share helicopter rides is set at 5%.
How does the GST change affect aspiring pilots looking to learn flying?
-Approved flying training courses are now exempt from GST, making it less expensive for aspiring pilots to learn to fly.
What is the change in GST for R&D services provided by specific institutions?
-R&D services provided by specific institutions will now be exempt from GST.
How does the GST change impact those renting commercial property if the landlord is not registered?
-If the landlord is not registered, the GST for renting commercial property will now be paid by the tenant.
What is the new GST rule for ancillary services offered by a Goods Transport Agency?
-Ancillary services offered by a Goods Transport Agency with a consignment note will be taxed as part of the main transportation service. If these services are billed separately, they will face a different GST rate.
Outlines
💼 GST Council Meeting Outcomes
The Finance Minister, Nirmala Sitharaman, chaired the 54th GST Council meeting resulting in significant changes to the Goods and Services Tax (GST) rates. The meeting brought both good and bad news for consumers and businesses. On the positive side, the GST on extruded or expanded savory snacks was reduced from 18% to 12%, aligning it with other snacks like namkin and buia. Additionally, life-saving cancer drugs saw a substantial GST cut from 12% to 5%. On the flip side, car seats will now attract a higher GST of 28%, up from 18%, which could increase the cost of vehicle interiors. Life and health insurance may also see changes as a new committee will review GST-related issues. For services, GST on seat share helicopter rides is set at 5%, while charter flights remain at 18%. Flying training courses have been made GST exempt, and R&D services provided by specific institutions will also be exempt from GST. Property buyers seeking prime locations will now be taxed at the same rate as construction services for these locations. Foreign airlines with branch offices importing services will continue to enjoy GST exemption, with past issues to be sorted based on current guidelines. Commercial property tenants will now be responsible for GST if the landlord is not registered. Lastly, ancillary services offered by goods transport agencies will be taxed as part of the main transportation service if billed with a consignment note, but different rates apply if billed separately.
Mindmap
Keywords
💡GST
💡Nirmala Sitharaman
💡Savory Snacks
💡Life-Saving Cancer Drugs
💡Car Seats
💡Life and Health Insurance
💡Helicopter Rides
💡Approved Flying Training Courses
💡R&D Services
💡Commercial Property
💡Goods Transport Agency
Highlights
GST on extruded or expanded savory snacks reduced from 18% to 12%.
GST on unfried snack pellets remains at 5%.
GST on some life-saving cancer drugs slashed from 12% to 5%.
GST on car seats increased from 18% to 28%.
Life and health insurance may see changes with a new committee looking into GST-related issues.
GST set at 5% for seat share helicopter rides.
Charter flight GST remains at 18%.
Approved flying training courses are now GST exempt.
R&D Services provided by specific institutions will be exempt from GST.
GST issues for past services will stick to the current rules.
Charges for better locations or PLC's in property buying will be taxed at the same rate as construction service.
GST exemption for foreign airlines with branch offices importing services remains.
Past GST issues for foreign airlines will be sorted based on current guidelines.
For commercial property rentals, GST will now be paid by the tenant if the landlord isn't registered.
Ancillary services offered by a Goods transport agency with a consignment note will be taxed as part of the main transportation service.
If ancillary services are billed separately, they will face a different GST rate.
Transcripts
on 9th of September Finance Minister
nirmala sitaraman ched the 54th GST
council meeting and there are some big
changes coming your way that could hit
or help your wallet let's dive into the
top highlights of what is getting
cheaper and what is becoming more
expensive first up let's talk about
goods numin and savory snacks if you
love snacking here is some good news the
GST on extruded or expanded Savory
snacks is dropping in from 18% to 12%
now this puts in line with other
Munchies like namkin and buia however
GST on unfried snack pellets remains at
5% remember the new 12% rate is for
future purchases
only there is significant reduction in
GST on some life-saving Cancer drugs
slashed from 12% to
5% now for some not so good news the GST
on car seats is going up from 18 to 28%
bringing it on par with motorcycle seats
so if you're planning to upgrade your
vehicle's interior it might cost you
more now onto Services life and health
insurance big changes could be on the
way for life and health insurance a new
committee will be looking into GST
related issues here so stay tuned for
updates besides if you're planning a a
quick getaway in the skies GST is set at
5% for seat share helicopter rights but
if you are going all out on chter flight
that stays at
18% we have great news for our aspiring
Pilots approved flying training courses
are now GST exempt so Learning to Fly
just got a little lighter on the
pocket besides R&D Services provided by
specific institutions will be exempt
from GST and as for the past GST issues
they'll stick to the current
rules besides if you're buying property
and want a prime spot the charges for
better locations or plc's will now be
taxed at the same rate as the
construction service
itself for foreign Airlines with Branch
offices importing Services the GST
exemption remains any past issues they
will be sorted based on current
guidelines now if you're renting
commercial property here is a change GST
will now be paid by the tenant if the
landlord isn't registered so make sure
to check your
[Music]
agreements now if you're in logistics
listen up ancillary services offered by
a Goods transport agency with a
consignment note will be taxed as part
of the main transportation service but
if these services are built separately
they will face a different GST rate now
that's all for this Roundup of the
latest GST Council decisions make sure
to follow And subscribe to business
standard to stay in the loop on all the
updates that matter to you thanks for
watching and see you next time
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