The recommendations of the 55th GST Council on Saturday, December 21 included reduction in GST rate on Fortified Rice Kernel to 5% from 18%. An official statement also stated that the GST council also recommended full exemption of taxes on gene therapy. The rates of taxes on used cars will be raised to 18%. Also there was no change in the rates of popcorn in theatres, the statement clarified.
The GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman also recommended exemption of GST on contributions by general insurance companies from third-party motor vehicle premiums for Motor Vehicle Accident Fund.
No GST on penal charges by banks, NBFCs
It was decided that no GST will be levied on the transaction of vouchers as they are neither supply of goods nor supply of services. The Council also stated that no GST is payable on ‘penal charges’ levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms. GST Council recommends reduction of payment of pre-deposit for filing an appeal before the Appellate Authority in respect of an order passed which involves only penalty amount.
GST on used cars to rise
The GST rate is being raised from 12% to 18 % on sale of all old and used vehicles, including EVs other than those specified at 18% (Sale of old and used petrol vehicles of engine capacity of 1200 cc or more & of length of 4000 mm or more; diesel vehicles of engine capacity of 1500 cc or more & of length of 4000 mm and SUVs.)
No change in popcorn
Stating that there is no new taxes on popcorn, the statement said, “Ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled. However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (eg caramel popcorn), it would be classifiable under HS 1704 90 90 and attract 18% GST. It has been decided to regularise the issues for the past on “as is where is” basis. It also emphasised that there is no new taxes.
Reports said decisions were not taken on some momentous issues such as tax on insurance premiums and the Group of Minister’s report on rate rejig of as many as 148 items. GST Council has deferred decisions on tax rates on food delivery platforms like Swiggy and Zomato. The proposed move to bring ATF (or aviation turbine fuel) under the ambit of GST due to opposition from the states, Union Finance Minister Nirmala Sitharaman told the media.
Among the items where tax rates were changed at the 55th GST Council on December 21 meeting are gene therapy, used electric vehicles and fortified rice kernels. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
