GST Council Meeting / No GST exemption on insurance... Confusion on EV cleared, read details

GST Council Meeting: Recently, the 55th meeting of the GST Council was held in Jaisalmer, in which Finance Minister Nirmala Sitharaman informed about various important decisions. In the press conference, she told that in the meeting, changes and relief have been given in the rates of GST on many products, which indicate important changes in the Indian economy.

Key decisions:

Tax reduction on fortified rice kernels: The Finance Minister said that GST on fortified rice kernels has been reduced from 18% to 5%, which will provide relief to farmers and consumers.

GST on popcorn: An important decision has also been taken regarding popcorn. Popcorn prepared with normal salt and spices will attract 5% GST, if it is not packaged and labeled. At the same time, 12% GST will be levied on packaged and labeled popcorn. Popcorn prepared with sugar like caramel popcorn will attract 18% GST. Gene therapy out of GST: The government has completely excluded gene therapy from the scope of GST, which will reduce the prices of products related to it in the medical field.

Relief on agricultural products: Nirmala Sitharaman has announced not to impose GST on black pepper and raisins. Through this, farmers are expected to get big relief, especially small farmers who trade these products.

Exemption for payment aggregators: Payment aggregators who make payments of less than Rs 2000 will be exempted from GST. Also, if they take a long-term loan from NBFC, then GST will not be levied on penal charges.

No change on health insurance: There has been no change in the GST rates on health insurance and term insurance in this meeting. However, it will be considered further.

Relief to small companies: The Finance Minister has announced to simplify the GST registration process for small companies. For this, a new concept note has been prepared, which will make the registration process easier for these companies.

GST on Electric Vehicles (EV): The Finance Minister also highlighted the GST rates on Electric Vehicles (EV). 5% GST will be levied on new EVs, but if a person buys and sells a used EV, then no GST will be levied on it. At the same time, 18% GST will be levied on the purchase and sale of EV by companies.

Key personalities involved in the meeting:

Many prominent leaders and officials attended this meeting of the GST Council. The meeting was chaired by Finance Minister Nirmala Sitharaman, while Minister of State for Finance Pankaj Chaudhary was also present with her. Apart from this, the Chief Ministers of Jammu and Kashmir, Goa, Haryana, Odisha and Meghalaya and Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh and Telangana also attended the meeting. Many senior officials of the Finance Ministry were also present in the meeting, who discussed various issues.

Conclusion:

This meeting of the GST Council has given relief to the Indian trade and industry. Important decisions taken by Finance Minister Nirmala Sitharaman will benefit consumers, farmers, and businesses. Through these decisions, the government is trying to provide uniformity and relief in tax rates on products and services falling under the ambit of GST, thereby strengthening the Indian economy.