55th GST Council recommends changes in GST rates of services

To bring a supply of the sponsorship services provided by the body corporates under the Forward Charge Mechanism.

To exempt GST on the contributions made by general insurance companies from the third-party motor vehicle premiums collected by them to the Motor Vehicle Accident Fund.

To omit the definition of declared tariff and suitably amend the definition of specified premises (from the services rate and exemption notifications) to link it with actual value of supply of any unit of accommodation provided by the hotel and to make the rate of GST applicable on restaurant services in such hotels, for a given financial year, dependent upon the ‘value of supply’ of units of accommodation made in the preceding financial year.

To exclude taxpayers registered under the composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-CTR dated 08.10.2024 vide which renting of any commercial/ immovable property (other than residential dwelling) by an unregistered person to registered person was brought under reverse charge mechanism.

Source : https://www.pib.gov.in/PressReleasePage.aspx?PRID=2086873