TNI National Bureau: At its 55th meeting in Jaisalmer, the Goods and Services Tax (GST) Council clarified tax rates on popcorn while deferring key decisions, including reductions in GST for insurance premiums. The Council also announced several rate revisions and exemptions for other goods and services.
Key Highlights of the GST Council Meeting:
- Tax Rates on Popcorn Clarified:
- Non-pre-packaged popcorn mixed with salt and spices: 5% GST.
- Pre-packaged and labeled popcorn mixed with salt and spices: 12% GST.
- Caramelized popcorn (sugar-based): 18% GST.
- Insurance Premium Tax Cuts Deferred:
- Proposal to exempt GST on term life insurance premiums and health insurance for senior citizens was deferred due to lack of consensus.
- Health insurance coverage up to ₹5 lakh for individuals and full exemption for senior citizens were under discussion, with the existing 18% rate continuing for higher coverage.
- Other Rate Clarifications and Revisions:
- Fortified Rice Kernels: GST reduced to 5% from 18%.
- Gift Vouchers: Exempted from GST.
- Used Cars and EVs: Uniform 18% GST on supplier margins, applicable across all vehicles, including EVs.
- Rate Rationalization Report Postponed:
- Recommendations for GST changes on 148 items by the Group of Ministers (GoM) on rate rationalization were not tabled.
- Extension for GST Compensation Cess Review:
- The GoM on GST compensation cess received a six-month extension until June 2025 to finalize its report.