Gist: The 54th GST Council Meeting clarified various changes on the GST Rated of Services

The Union Finance Minister Nirmala Sitharaman chaired the 54th meeting of the GST Council today ( 9th September 2024 ) at Sushma Swaraj Bhawan in New Delhi. The Union Minister of State for Finance M.P.P. Chaudhary, along with the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana also participated in the meeting. The 54th GST Council Meeting concluded on 9th September 2024 with major changes in GST Rates of Services such as : GST on Life and Health Insurance The council recommended to constitute a Group of Ministers ( GoM ) to assess existing GST on life insurances and health insurance and submit a report on the same by the end of October 2024.The Minister also stated that the GST Council will decide on the reduction of tax burden on health insurance from the current GST rate of 18 per cent or exempt certain categories of individuals such as senior citizens. Get a Copy of (Book Name), Click here Flying Training Courses The council exempted the GST of flying training courses conducted by Directorate General of Civil Aviation ( DGCA ) approved Flying Training Organizations ( FTOs ).  Transport of passengers by helicopters Notified that the GST rate of 5% will apply to passenger transport services by helicopters on a seat-share basis, and to address the regularization of GST for the past period on an ‘as-is, where-is’ basis. Additionally, please clarify that the chartering of helicopters will continue to be subject to an 18% GST rate. Supply of Research and Development Services. The council recommended to exempt GST from Supply of Research and Development Services by Government entities, research associations, universities, colleges or other institutions, notified under clausing the GST rate of 5% will apply to passenger transport services by helicopters on a seat-share basis, and to address the regularization of GST for the past period on an ‘as-is, where-is’ basis. Additionally, please clarify that the chartering of helicopters will continue to be subject to an 18% GST rate. Get a Copy of (Book Name), Click here Preferential Location Charges ( PLC ) The GST Council clarified that the Preferential Location Charges is considered part of the composite supply with construction services. PLC is inherently bundled with the main supply and is therefore eligible for the same tax treatment as the primary service, which is construction. Affiliation Services Affiliation services provided by educational boards like CBSE are taxable. The council clarified that the affiliation services provided by universities to their constituent colleges are not exempted from tax and GST at the rate of 18% will be applicable on the affiliation services provided by the universities. Renting of Commercial Property The GST council proposed to bring renting of commercial property by an unregistered person to a registered person under Reverse Charge Mechanism ( RCM ) in order to prevent revenue leakage. Get a Copy of (Book Name), Click here Import of Service by Branch Office The council suggested to exempt and regularize import of services by an establishment of a foreign airlines company from a related person or any of its establishments outside India when made without consideration. Ancillary/ Intermediate Services Provided by GTA Ancillary/ Intermediate services such as loading, unloading, packing, unpacking, etc will be included as a part of composite supply. But when invoiced separately they will not be treated as a composite supply of transport of goods.