The 54th GST Council meeting (September 2024) approved major reforms including cancer drug rate cuts, Section 128A amnesty scheme, Invoice Management System, and retrospective ITC time limit extension.
Namkeen & extruded savory products: Reduced from 18% to 12% GST
Impact: Benefit to FMCG snack manufacturers and consumers
Cancer drugs (Trastuzumab Deruxtecan, Osimertinib, Durvalumab): Reduced to 5% GST
Impact: Significant relief for cancer patients — saves ₹5,000-₹1 lakh per month per patient
Metal scrap: 2% TDS under RCM introduced for B2B supplies by unregistered dealers
Impact: Reduces tax evasion in scrap metal sector
Car and motorcycle seats: Rate increased from 18% to 28%
Impact: Treated as motor vehicle parts — alignment with auto components
Invoice Management System (IMS): Approved for rollout from October 2024
Impact: Taxpayers can accept/reject/pending invoices before GSTR-2B auto-population
Mandatory multi-factor authentication for GSTN login
Impact: Enhanced security for taxpayer accounts — phased rollout from 2025
Biometric Aadhaar authentication extended to all states
Impact: Reduces fake/fraudulent GST registrations — earlier limited to Gujarat, Puducherry, Andhra Pradesh
GSTR-1 filing deadline: 13th remains (no change to 10th as proposed)
Impact: Status quo maintained after industry representations
Online gaming: 28% on full face value confirmed (review after 6 months of data)
Impact: No change from 53rd Council decision — industry seeking reconsideration
Research & development: GST exemption for R&D services by government/university entities extended
Impact: Continued support for innovation ecosystem
Flying Training Courses (FTCs): Exempted from GST when approved by DGCA
Impact: Aviation training sector relief — reduces cost of pilot training
Ancillary services by GTA (Goods Transport Agency): Loading/unloading by GTA covered under same rate as GTA services
Impact: Simplifies rate determination for logistics
Section 128A: Waiver of interest and penalty for FY 2017-18 to 2019-20 demands (non-fraud)
Impact: Massive relief — estimated ₹1.5 lakh crore in disputed demands could be resolved
Retrospective amendment to Section 16(4): ITC time limit extended for FY 2017-18 to 2020-21
Impact: Taxpayers who missed ITC deadline get a second chance — file by 31 March 2025
GSTAT (GST Appellate Tribunal): Recommended appointments in remaining states
Impact: Faster dispute resolution — cases currently stuck without tribunal
GST Compensation Cess: Continue levy until March 2026 for loan repayment
Impact: Luxury/sin goods continue bearing 15-22% additional cess
| Item/Service | From | To | Effective |
|---|---|---|---|
| Namkeen/savory snacks | 18% | 12% | Immediate |
| Cancer drugs (3 specific medicines) | 12% | 5% | Immediate |
| Car/motorcycle seats | 18% | 28% | Immediate |
| Metal scrap (B2B by unregistered) | No RCM | 2% TDS under RCM | 10 Oct 2024 |
| Flying training courses (DGCA) | 18% | Exempt | Immediate |
| Roof-mounted AC for railways | 28% | 18% | Immediate |
The biggest taxpayer relief from the 54th meeting — complete waiver of interest and penalty for non-fraud demand notices:
The 54th GST Council Meeting was held on 9 September 2024 in New Delhi, chaired by Union Finance Minister Smt. Nirmala Sitharaman. All State and Union Territory Finance Ministers participated as members. Key decisions included cancer drug rate cuts, Section 128A amnesty scheme approval, and Invoice Management System rollout.
Section 128A provides a waiver of interest and penalty for demand notices issued for FY 2017-18, 2018-19, and 2019-20 under Section 73 (non-fraud cases). Taxpayers must pay the tax demand amount by 31 March 2025 to avail the waiver. This benefits thousands of taxpayers with pending demands from the initial GST years.
Three cancer drugs were reduced to 5% GST: (1) Trastuzumab Deruxtecan (breast cancer), (2) Osimertinib (lung cancer), and (3) Durvalumab (various cancers). Previously taxed at 12%, this reduction saves patients ₹5,000 to ₹1 lakh per month depending on the drug and dosage.
The Invoice Management System (IMS) is a new GSTN feature approved for October 2024 rollout. It allows taxpayers to accept, reject, or keep pending the invoices uploaded by their suppliers in GSTR-1. Only accepted invoices flow into GSTR-2B for ITC claims. This gives buyers more control over their ITC and reduces mismatched credit issues.
Yes. The 54th GST Council confirmed the 28% GST on full face value for online gaming (decided in the 53rd meeting). The Council noted that a 6-month review would be conducted based on collection data. The industry has been seeking reconsideration, arguing the high rate impacts growth, but no change was made.
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