GST Council meet key selections: No GST on financial institution penal prices, readability on tax charge on popcorn & extra – high bulletins
GST Council Assembly Highlights: The fifty fifth GST council assembly, chaired by Finance Minister Nirmala Sitharaman, introduced a number of vital tax reforms on Saturday. The council accredited GST exemption for cost aggregators dealing with transactions beneath Rs 2000, lowered compensation cess to 0.1% for service provider exporters, and prolonged tax reduction for missile elements.
Through the media briefing, the Finance Minister clarified that banks and monetary establishments wouldn’t want to gather GST on penalty prices imposed on debtors.
GST Council Assembly on December 21: High Bulletins
Key selections from the fifty fifth GST council assembly embrace:
* Fortified rice kernels’ GST charge lowered to five per cent
* Gene remedy receives GST exemption
* Revised definition proposed for pre-packaged and labelled objects
* Penalty prices by banks exempt from GST
* Insurance coverage premium tax discount postponed pending IRDAI enter
* 12 per cent GST relevant on ACC blocks with over 50 per cent fly ash
* GST exemption for agriculturist-supplied black pepper and raisins
* Lengthy Vary Floor to Air Missile (LR-SAM) system granted tax exemption
* Compensation cess lowered to 0.1% for service provider exporters, matching GST charge
GST Well being Insurance coverage Replace:
The Finance Minister has prolonged the timeline for the GoM’s choice concerning medical insurance taxation.
A ministerial panel led by Bihar’s deputy chief minister Samrat Chaudhary beneficial GST exemption for time period life insurance coverage premium funds. The proposal consists of potential GST reduction for medical insurance premiums paid by aged residents and protection as much as Rs 5 lakh for all people, suggesting both exemption or discount from the present 18% charge. The ultimate choice stays pending.
Meals Supply Platforms Standing:
The council has postponed its choice on revising tax charges for Swiggy, Zomato, and related platforms. The consideration includes decreasing GST from the current 18% (with ITC) to five% (with out enter tax credit score).
“Meals supply by e-commerce was extensively mentioned, however no choice has been taken… It has been deferred…” mentioned Nirmala Sitharaman.
Aviation Gas Dialogue:
The Finance Minister revealed that state governments rejected the proposal to incorporate aviation turbine gasoline inside GST framework.
“States didn’t really feel comfy. They did not need the ATF as a result of they noticed it as a part of the crude petroleum diesel basket, and due to this fact they mentioned that it alone can’t be taken out, and due to this fact that continues to stay the place it’s at this time,” she defined throughout the media briefing following the fifty fifth GST Council assembly.
Concerning ready-to-eat popcorn taxation, the council specified that salt and spice-seasoned popcorn, just like namkeens, will incur 5% GST when bought with out packaging and 12% when pre-packaged and labelled.
Nevertheless, sugar-coated varieties like caramel popcorn, categorised as confectionery underneath HS 1704 90 90, will entice 18% GST.
