Jaisalmer: The GST Council on Saturday decided to waive tax on gene therapy used to treat cancer and reduce the levy on fortified rice grains used in the PDS to 5%, but levy on health and term assurance and food Call deferred at low rates for delivery services. More consultation was needed. The all-powerful panel led by the Union Finance Minister, which also had states as members, also rejected the demand for inclusion of ATF (aviation turbine fuel) under GST, as proposed by airlines and civil aviation. Ministry.
It has sought to make life easier for businesses by taking an in-principle decision to move towards a simpler registration regime for small businesses and also allow temporary registration of taxpayers making certain payments. Both registration changes would require amendments to the law. Finance Minister Nirmala Sitharaman told reporters that the much-awaited decision on term and health insurance requires further consultation and inputs from insurance regulator IRDAI have also been sought.
The issue is expected to be discussed within the group of ministers led by Bihar Deputy CM Samrat Chaudhary. Other GOMs will also discuss further – rate rationalization and compensation cess.
“The issue of levy of GST on reverse charge basis by municipalities for granting FSI including additional FSI was raised in the Council. On this basis the matter was deferred for further investigation on the orders of the Central Government The amount belongs to the municipalities or local authority,” an official release said.
Additionally, Sitharaman said, based on Andhra Pradesh’s request for an additional 1% cess for a limited period to deal with floods in the state, a new committee will be formed to look into the legal and structural issues and recommend a uniform policy on imposition. GOM has been established. Provision of tax in case of natural disaster in any state. A few years ago, such a system was created for Kerala, but a similar system may be created for the future.
The council decided that 18% GST will be levied on suppliers’ margins on all used cars, including electric vehicles. Although there will be no tax transactions involving individuals, the levy will be applicable in case of deals involving companies or used car sellers. Sitharaman said the Center had proposed a 5% tax on EVs, but states wanted to impose a higher tax. Several clarifications were made by the GST Council, including a 12% tax on ready-to-eat popcorn along with pre-packed popcorn with salt and spices, in line with the tax on namkeen. Sugar ones, which are caramelized, will face an 18% tax.
Similarly, the Council said that voucher transactions would not be taxable as they were neither supplies of goods nor services. Further, it was clarified that small businesses covered under the reverse charge mechanism will not have to pay GST on paying rent to unregistered landlords. Additionally, no GST will be payable on ‘penal charges’ levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms.
