GST 2.0: Re-labelling of drugs, medical devices not mandatory for stocks issued before Sept 22 (Must issue revised price lists to dealers, retailers for display), Pg 15.

Key Highlights:

• The Ministry of Finance clarified that re-labeling of drugs and medical devices isn't mandatory for stocks issued before September 22 following GST 2.0 implementation.
• Individual health and life insurance policies are exempt from GST, but group policies are not.
• Reinsurance services are also exempted from GST.
• Hotels offering accommodation units valued at Rs 7,500 or less per unit per day cannot avail ITC.
• Local delivery services will be taxed at 18% GST, applicable from September 22.

Detailed Insights:

• Manufacturers must revise the Maximum Retail Price (MRP) and issue revised price lists to reflect GST rate cuts.
• Insurance companies cannot claim Input Tax Credit (ITC) on commissions and brokerages for individual health and life insurance policies after September 22.
• Reinsurance allows insurance companies to transfer risk to protect against potential losses.
• The GST Council decided on September 3 to exempt premiums paid on individual health and life insurance policies from GST, previously at 18%.
• Beauty and physical well-being services have a mandatory 5% GST rate without ITC, with no option for service providers to charge 18% with ITC.
• Delivery services via e-commerce operators like Zomato and Swiggy will face an 18% GST on delivery charges.
• The government aims to ensure end customers receive maximum benefits from GST changes by disallowing dual-rate structures for certain industries.

Key Concepts Involved:

• GST (Goods and Services Tax): An indirect tax levied on the supply of goods and services.
• MRP (Maximum Retail Price): The highest price at which a product can be sold to consumers.
• ITC (Input Tax Credit): Tax paid on inputs that can be adjusted against the GST liability on output.
• Reinsurance: Insurance purchased by insurance companies to transfer risk.