The 55th meeting of GST Council has started in Jaisalmer. Many decisions can be taken in this meeting. This meeting is being presided over by Union Finance Minister Nirmala Sitharaman. According to media reports, autoclaved aerated concrete (AAC) blocks containing more than 50% fly ash are placed under HS code 6815. After this change, GST on these blocks will be 12 percent instead of 18 percent.
Eating popcorn will become expensive!
Simplifying the tax structure of fortified rice, the Council has decided to levy 5% GST on it irrespective of its use for any purpose. Complete information regarding the tax rate on ready-to-eat popcorn has also been revealed. Popcorn prepared with common salt and spices, if not packaged and labelled, will attract 5% GST. Whereas if its packaging and labeling is done then this rate will be 12 percent. Whereas popcorn made from sugar like caramel has been categorized as “sugar confectionery” and will attract 18% GST.
Increase in GST rate on old vehicles
The GST rate on the sale of old and used vehicles, including electric vehicles, has been increased from 12% to 18%. The decision on insurance matters has been postponed for now. No consensus could be reached on this issue in the Group of Ministers (GoM) meeting, so it has been sent for further investigation.
This meeting of GST Council was considered special.
The GST Council meeting was being considered special as the government could have relaxed the GST rate on premiums for term life insurance, health insurance and health insurance for senior citizens, but this issue is not being discussed in the meeting at present. GST Council has been suspended.
There was no consensus in the group of ministers
The GST Council on Saturday postponed the decision on reducing the tax rate on life and health insurance policy premiums. The officers provided this information. In the 55th meeting of the GST Council, it was decided that some more technical aspects need to be resolved in this regard. The GOM was tasked to discuss this further.
The decision was taken by the Council under the chairmanship of Union Finance Minister Nirmala Sitharaman and in the presence of her counterparts from the states. Bihar Deputy Chief Minister Samrat Chaudhary said there will be another meeting of the GoM on insurance to decide on taxation on group, individual, senior citizen policies.
