GST rate changes w.e.f. 10.10.2024-CGST Rate notification 08/2024!

The Goods and Services Tax (GST) regime in India has been evolving since its inception, with regular updates to ensure better compliance, ease of doing business, and adaptation to the changing economic landscape. On October 10, 2024, a significant update was introduced through the Central Goods and Services Tax (CGST) Rate Notification 08/2024, which brought key changes in the tax structure across various sectors. 

Let’s understand the changes.

Notification No. 08/2024 - Central Tax (Rate) 08^th October, 2024

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MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

Date: 08.10.2024

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Notification No. 08/2024 - Central Tax (Rate)

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G.S.R. 620(E).- In exercise of the powers conferred by sub-section (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary for the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 12/2017-Central Tax (Rate), dated the 28th June 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June 2017, namely:-

1. (i) In the said notification, in the Table, -

(A) After serial number 25 and the entries relating thereto, the following serial number and entries relating thereto in columns (2), (3), (4) and (5) shall be inserted, namely: -

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(B) After serial number 44 and the entries relating thereto, the following serial numbers and entries relating thereto in columns (2), (3), (4) and (5) shall be inserted, namely: -

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(C) After serial number 66 and the entries relating thereto, the following serial number and entries relating thereto in columns (2), (3), (4) and (5) shall be inserted, namely: -

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(D) For serial number 69 and the entries relating thereto in columns (2), (3), (4), and (5), the following shall be substituted, namely: -

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(E) Against serial number 71, in column (3), for the words "National Council for Vocational Training", the words "National Council for Vocational Education and Training" shall be substituted.

(ii) In paragraph 2 of the said notification,

(A) In item (h), -

(a) In sub-item (i), for the words "National Council for Vocational Training", the words "National Council for Vocational Education and Training" shall be substituted.

(b) In sub-item (ii), for the words "National Council for Vocational Training", the words "National Council for Vocational Education and Training" shall be substituted.

2. This notification shall come into force with effect from the 10th day of October 2024.

[F. No. 190354/149/2024-TO(TRU-II) - Part-I CBEC]

DILMIL SINGH SOACH, Under Secy.

Note: The principal notification number 12/2017 - Central Tax (Rate), dated the 28th June 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691 (E), dated the 28th June 2017 and was last amended vide notification number 04/2024-Central Tax (Rate), dated 12th July 2024, published in the Gazette of India vide number G.S.R. 388(E), dated the 12th July 2024.

Key Highlights of GST Rate Changes (w.e.f. 10.10.2024 - CGST Rate Notification 08/2024)

The following services are marked as Nil rated w.e.f. 10.10.2024:

• Supply of services by way of providing metering equipment on rent, testing for meters/transformers/capacitors, etc., releasing electricity connection, shifting of meters/service lines, issuing duplicate bills, etc., which are incidental or ancillary to the supply of transmission and distribution of electricity provided by electricity transmission and distribution utilities to their consumers. (HSN 9969/9986)
• Research and development services against consideration received in the form of grants supplied by -

(a) A Government Entity; or

(b) A research association, university, college, or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961.

Provided that the nil rate is applicable only when the research association, university, college, or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961 is so notified at the time of supply of the research and development service.

(HSN 9981)

• Services of affiliation provided by a Central or State Educational Board or Council or any other similar body, by whatever name called, to a school established, owned, or controlled by the Central Government, State Government, Union Territory, local authority, Governmental Authority, or Government entity. (HSN 9992)

• Any services provided by -

(a) The National Skill Development Corporation set up by the Government of India;

(b) The National Council for Vocational Education and Training;

(c) An Awarding Body recognized by the National Council for Vocational Education and Training;

(d) An Assessment Agency recognized by the National Council for Vocational Education and Training;

(e) A Training Body accredited with an Awarding Body that is recognized by the National Council for Vocational Education and Training,

In relation to-

(i) The National Skill Development Programme or any other scheme implemented by the National Skill Development Corporation; or

(ii) A vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

(iii) Any National Skill Qualification Framework aligned qualification or skill in respect of which the National Council for Vocational Education and Training has approved a qualification package.

(HSN 9983/9991/9992)

Conclusion

The changes introduced through the CGST Rate Notification 08/2024, effective from October 10, 2024, reflect the government’s commitment to streamlining tax policies for key sectors. By exempting essential services like electricity-related support, research funded by grants, educational affiliations, and vocational skill development programs, the revised GST framework aims to promote public welfare, education, and skill-building initiatives.

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