54th GST Council Meeting highlights: What's getting cheaper and what’s getting pricier

Summary

In 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.