The 55th GST Council meeting, held under the leadership of the country's finance minister, Nirmala Sitharaman, came to an end on Saturday, December 21. The minister, along with her associates, is expected to hold a press conference at 18:00 IST.
Insurance Tax Cut Deferred
Some of the key aspects that have emerged from the meeting are decisions or lack of some much-discussed issues.
When we look at the marquee issues that have been, the following have been learnt.
Decisions on the most talked-about issues of insurance premiums (health and life), that is, lowering the GST rate on insurance premiums, have been deferred due to a lack of consensus among the GST council members.
Currently, a GST of 18 per cent is levied on entire life insurance and health insurance.
States Oppose ATF Rate
In this regard, a Group of Ministers or GoM is expected to meet on insurance premiums in January 2025.
Up next, the issues of lowering tax on food delivery have been deferred due to a lack of consensus in the panel. Here again, the current GST rate on food delivery stands at 18 per cent.
Another major issue that has been deferred is the issue of bringing ATF, or Aviation Turbine Fuel under the ambit of the GST regime. This issue was also deferred as the states, that are a part of the council opposed the move.
GST On Used Cars
Some other aspects that have emerged in the meeting include a possible 18 per cent GST on the sale of used cars.
GST On Popcorn
It is also being understood that the GoM report on rate tax Rationalisation has not being submitted.
In addition, clarification on the GST levied on popcorn was also issued.
A 5 per cent GST will levied on ready-to-eat popcorn, a further 12 per cent for pre-packaged, and an 18 per cent GST will added to caramel popcorn.
Namkeens or savouries are currently taxed at 12 per cent, meanwhile, confectionary items are charged at 18 per cent.