Jaisalmer: Union Minister Nirmala Sitharaman on December 21, 2024 announced the decisions taken in the GST Council Meeting December 2024. Sitharaman announced key decisions from the December 2024 GST Council meeting, which included significant changes. The Council finalised to include a 5 per cent GST rate on fortified rice, and 18 per cent rate on used cars (including EVs), and exemptions for gene therapy and certain payment aggregators.
Addressing a press conference, the Finance Minister said decisions on food delivery app taxes and ATF GST were deferred. The meeting also addressed penal charges levied by banks and extended IGST exemptions for surface-to-air missiles.
“To clarify that 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. (Note: There is no new imposition of any tax in this regard and is merely a clarification as certain field units were demanding different tax rates on the same. Therefore, it is a clarification being recommended by the GST Council to settle the disputes arising out of interpretation.)” – Ministry of Finance stated in its release.
GST Council Meeting Outcome: What Nirmala Sitharaman said – Highlights
- The Council deliberated on the possibility of taxes on Quick commerce, delivery platform, food delivery, Sitharaman said, adding that GST on food delivery apps deferred. She said the Council will discuss in detail and take a decision later. It means that the GST Council deferred decisions on tax rates on food delivery platforms like Swiggy and Zomato.
- Gene therapy now exempt from GST, Sitharaman said while briefing the outcome of 55th GST Council meeting.
- Payment aggregators handling transactions less than Rs 2000 payment have been given exemption. It does not extend to payment gateways, Sitharaman said.
- Sitharaman said the GST Council deferred decision to cut tax on insurance premium as many inputs including IRDAI comments awaited.
- GST Council did not agree on bringing Aviation Turbine Fuel (ATF) into Goods and Services Tax fold, Sitharaman confirmed.
- No timeline has been given on compensation cess, finance minister said.
- The GoM on GST rate rationalisation deferred submission of its report, Sitharaman said and requested not to report tax related issues without official conformation.
- No GST payable on penal charges by levied levied on borrowers by banks or financial institutions, Sitharaman announced.
- Finance Minister announced an extension of the IGST exemption on surface-to-air missiles.
- GST Council slashes rate on fortified rice kernels to 5 per cent, Finance Minister Nirmala Sitharaman said.
- GST Council recommended exemption of GST on contributions by general insurance companies from third-party motor vehicle premiums for Motor Vehicle Accident Fund.
- GST Council recommended no GST on transaction of vouchers as they are neither supply of goods nor supply of services. The provisions related to vouchers is also being simplified.
- GST Council recommended 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
- The Council approved increase in rate on sale of old and used cars including EV to 18 from 12 percent.
- Fortified rice: Sitharaman announced Concessional GST on food preparation supplied to weaker sections under government programmes extended.
- GST Council recommended amendment to definition of pre-packaged and labelled items, said finance minister.
- The GST Council approved the recommendation of the committee of officers suggesting measures for the various issues raised by the States in respect of issues pertaining to IGST settlement.
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