CBIC notified GST Rate Changes on Cancer Drugs, Namkeens and Savory Food Products and Car Seats

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued notifications implementing the following changes to GST rates, based on the recommendations of the GST Council: 1. Reduction of GST on Cancer Drugs:    The GST rate has been reduced to 5% for three critical cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. These life-saving drugs, previously taxed at higher rates, will now benefit from this reduction, making them more affordable for patients suffering from cancer. Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here 2. Reduction of GST on Namkeens and Savory Food Products:    The GST rate on extruded or expanded savoury products, including namkeens and salted snacks, has been reduced to 12%. This change excludes un-fried or uncooked snack pellets. 3. Increase in GST on Car Seats:    The GST rate for motor vehicle seats has been hiked to 28%, categorising these seats under the higher tax bracket. This is likely to impact manufacturers and consumers in the automotive sector. These changes come into effect from October 10, 2024, as per the official gazette notification. Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here The Goods and Services Tax ( GST ) Council had recommended the following Changes/Clarifications in GST Tax Rates  in its 54th Meeting: – Read More: 54th GST Council Meeting: Changes/Clarifications in GST Rates of Goods

1. Namkeens and Extruded/Expanded Savoury food products The GST rate of extruded or expanded products, savoury or salted ( other than un-fried or uncooked snack pellets, by whatever name called, manufactured through process of extrusion ), falling under HS 1905 90 30 to be reduced from 18% to 12% at par with namkeens, bhujia, mixture, chabena ( pre-packaged and labelled ) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90. The GST rate of 5% will continue on un-fried or uncooked snack pellets, by whatever name called, manufactured through the process of extrusion. To also clarify that the reduced GST rate of 12% on extruded or expanded products, savoury or salted ( other than un-fried or uncooked snack pellets, by whatever name called, manufactured through process of extrusion ), falling under HS 1905 90 30 is applicable prospectively. Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

2. Cancer Drugs The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to be reduced from 12% to 5%.

3. Metal Scrap Reverse Charge Mechanism ( RCM ) to be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold. A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.

4. Roof Mounted Package Unit ( RMPU ) Air Conditioning Machines for Railways To clarify that Roof Mounted Package Unit ( RMPU ) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28%. Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

5. Car and Motorcycle seats To clarify that car seats are classifiable under 9401 and attract a GST rate of 18%. GST rate on car seats classifiable under 9401 to be increased from 18% to 28%. This uniform rate of 28% will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28%.