BIG Decisions! What The FM Said About The Tax Rates On Insurance Premiums And Popcorn? News24 –

The 55th meeting of the GST (Goods and Services Tax) Council meeting took place today, December 21, 2024, in Jaisalmer, Rajasthan, chaired by Union Finance Minister Nirmala Sitharaman. She addressed the media in the evening after the council’s meeting got concluded.

Union Minister for Finance and Corporate Affairs Smt. @nsitharaman chairs the 55th meeting of the GST Council, in Jaisalmer, Rajasthan, today.

The participants included Union Minister for State for Finance Shri @mppchaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir,… pic.twitter.com/MmuPnigO1g

— Ministry of Finance (@FinMinIndia) December 21, 2024

Representatives from the central government, states, and union territories attended the meeting. This Council plays a crucial role in shaping the GST policies in India. Furthermore, the GST Council advises the central and state governments on GST-related matters, including taxation rules, exemptions, and laws.

GST Council Meeting: What Will Get Expensive & What Will Get Cheaper?

Rates Reduction And Exemption:

• GST rate of fortified rice kernels is reduced to 5%.
• Moreover, Gene therapy has been exempted from GST.
• Furthermore, the GST Council reduced the compensation cess rate for merchant exporters to boost their working capital.
• Sitharaman has announced that the IGST exemption on surface-to-air missiles will be extended.

Rates Hike:

• The Council has approved a tax rate hike from 12% to 18% on the sale of used and old cars, including electric vehicles (EVs), by businesses. However, this change does not apply to individual-to-individual sales.
• Additionally, Finance Minister clarified that the ready-to-eat popcorn with added salt and spices will remain taxed at 5%. However, caramelized popcorn and items with added sugar comes under different GST slab.

Major Decision Differed:

• The Finance Minister said that the decision on reducing GST on insurance premiums will take time, as they’re waiting for input from insurance regulators. A Group of Ministers felt it’s a complex issue that needs more consideration.
• Furthermore, Aviation Turbine Fuel (ATF) will remain outside the GST purview, as the states have not agreed to bring it under the GST regime.
• The GST Council had an in-depth discussion on imposing GST on services provided by quick commerce, e-commerce, and food delivery apps. The Council has not yet made a decision on imposing GST on food delivery services as of now.
• The GST Council has put rate rationalization on hold for now and has been given more time to come to a decision.

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