54th Meeting of the GST Council

Introduction

The 54th GST Council Meeting, chaired by Finance Minister Smt. Nirmala Sitharaman, was held on 9th September 2024 in New Delhi. During the meeting, several important decisions were taken, including GST rate revisions, measures to facilitate trade, and enhancements to compliance procedures. Key ministers from states such as Goa, Bihar, Madhya Pradesh, and Telangana were among the attendees.

The recommendations made during this session are expected to significantly influence sectors like healthcare and transport, marking notable reforms in GST compliance and regulatory frameworks.
This article provides a detailed overview of the 54th GST Council Meeting and its major recommendations.

Highlights of the 54th GST Council Meeting

Key Rate Changes and Clarifications

Namkeens & Savory Food Products:
GST on extruded/expanded savoury food items has been reduced from 18% to 12%.
Cancer Drugs:
GST on essential cancer medications such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab has been reduced from 12% to 5%.
Roof-Mounted Package Units (RMPU):
Clarified that RMPU air-conditioning units used by railways fall under HSN 8415 and attract 28% GST.
Metal Scrap:
Reverse Charge Mechanism (RCM) introduced for metal scrap supplied by unregistered vendors.
Life & Health Insurance:
A Group of Ministers (GoM) will reassess the GST structure for life and health insurance, with recommendations expected by October 2024.
Research & Development Services:
GST exemption extended to R&D services supplied by government entities, universities, and recognised research institutions.
Helicopter Passenger Transport:
GST reduced to 5% for seat-sharing basis travel; charter services remain under 18%.
Commercial Property Rent:
RCM introduced for renting commercial property from unregistered to registered persons.
Penalty Waivers:
Special procedures introduced to waive interest and penalties for tax demands pertaining to 2017–18, 2018–19, and 2019–20.
B2C E-Invoicing:
A voluntary pilot for B2C e-invoicing will be launched in select states and sectors.
New GST Ledgers & Invoice Management System:
New RCM ledger, ITC Reclaim ledger, and an Invoice Management System (IMS) have been rolled out.

Recommendations from the 54th GST Council Meeting

1. GST Rate Changes and Clarifications for Goods
Namkeens and Savoury Products
GST rate on extruded or expanded savoury food products (excluding unfried/un-cooked snack pellets) reduced from 18% to 12%, aligning them with items like namkeens and bhujia.
Unfried/un-cooked snack pellets will continue to attract 5% GST.
Effective prospectively.
Cancer Drugs
GST reduced from 12% to 5% on select cancer medications, providing cost relief to patients.
Metal Scrap
- RCM applicable when unregistered suppliers sell to registered buyers.
- Registered suppliers must apply 2% TDS on B2B metal scrap transactions.
RMPU Air-Conditioning Units for Railways
Clarified classification under HSN 8415, attracting 28% GST.
Car and Motorcycle Seats
Car seats classified under HSN 9401 and taxed at 28%, bringing them in line with motorcycle seat taxation.
Applicable prospectively.
2. GST Rate Changes and Clarifications for Services
Life & Health Insurance
A GoM will conduct a comprehensive review of GST implications and submit a report by October 2024.
Passenger Transport by Helicopter
- Seat-sharing basis: 5% GST
- Charter services: 18% GST
  Past periods to be regularised on an “as-is-where-is” basis.
Flying Training Courses
DGCA-approved training courses offered by Flying Training Organisations are GST-exempt.
Research & Development Services
R&D services supplied by government/research institutions using government or private grants are exempt.
Past demands regularised on an “as-is-where-is” basis.
Preferential Location Charges (PLC)
PLCs collected before the completion certificate will now form part of the composite supply of construction, taxed at the same rate.
Affiliation Services
- Affiliation by educational boards like CBSE will be taxable.
- Services provided to government schools by state/central boards will be exempt prospectively.
  Past demands to be regularised.
Import of Services by Branch Offices
Import of services by foreign airline company branches without consideration will be exempt, with past periods regularised.
Commercial Property Renting
RCM applicable when unregistered persons rent commercial property to registered persons.
GTA Ancillary/Intermediate Services
Where consignment notes are issued, ancillary services are part of a composite supply and taxed at the same rate.
Separately provided services will not be treated as composite supply.
3. Trade Facilitation Measures
Interest & Penalty Waivers
Rule 164 to be inserted in CGST Rules for waiving interest/penalty for FY 2017–18 to 2019–20.
Deadline for availing the benefit: 31st March 2025.
Implementation of New Subsections in Section 16
Notification of Sections 118 & 150 of the Finance Act (No. 2), 2024 to regularise ITC-related issues retrospectively from 1 July 2017.
Amendments to CGST Rules & IGST Refunds
Rules 96(10), 89(4A), and 89(4B) to be omitted to simplify export refunds where exemption/concessional imports were used.
Clarifications to Be Issued
Circulars will clarify:
- Place of supply for advertising services to foreign clients
- ITC availability on demo vehicles
- Place of supply for data hosting services
4. B2C E-Invoicing Implementation
A voluntary pilot for B2C e-invoicing will be launched in selected states/sectors to:
- Improve transparency
- Reduce errors
- Enable customers to verify invoice accuracy
5. Introduction of New Ledgers & IMS
Enhancements include:
- RCM Ledger
- ITC Reclaim Ledger
- Invoice Management System (IMS) enabling taxpayers to accept/reject/keep invoices pending
  Taxpayers must declare opening balances by 31 October 2024.
6. Other Measures
- GST liability for film distributors/sub-distributors (pre-Oct 2021) will be regularised.
- Certain services related to electricity supply, such as application fees, testing charges, and labour charges, will be exempt as part of composite supply.
  Past demands will be settled on an “as-is-where-is” basis.

About the Author

Vinod

Vinod is an experienced legal writer who simplifies complex legal topics into clear and practical insights. His work helps entrepreneurs understand their legal responsibilities and build compliant, sustainable businesses with confidence.

January 8, 2026