Jaisalmer (Rajasthan), Dec 21 (IANS) Union Finance Minister Nirmala Sitharaman on Saturday announced that the Goods and Services Tax Council has approved the reduction of GST on rice kernels to 5 per cent, exempted life-saving gene therapy from tax, and extended the GST exemption for parts used in manufacturing surface-to-air missiles (SAM).
Addressing the media here after the 55th GST Council meeting, the Finance Minister said the decision to cut GST on rice kernels from 18 per cent to 5 per cent has been taken as the commodity is supplied to the weaker sections of society through the public distribution system.
“Similarly, the concessional 5 per cent GST is applicable on inputs of food preparations that are supplied for free distribution to economically weaker sections under government programs subject to existing conditions; so this is also an extension of the 5 per cent rate that prevails,” she said.
Explaining the rationale for increasing the tax on caramelised popcorn to 18 per cent, the Finance Minister said that these included added sugar which constituted a separate category just like carbonated drinks that are harmful to health and hence, are put under a higher tax slab.
She pointed out that salted and plain popcorn were also being sold in the market and the GST on them had not been increased.
She further stated that black pepper, whether fresh green or black pepper or dried black pepper, and raisins, when supplied by an agriculturist, are not liable to GST. However, if these commodities are sold by merchants, then they would be liable to pay tax.
She also said that all parts used for the manufacture of SAM missiles including software will continue to be exempt from GST.
The Finance Minister also said that while payment aggregators handling transactions below Rs 2,000 are eligible for exemptions, this does not apply to payment gateways and fintech services.
She said that no GST is payable on penal charges or levies collected by banks and NBFCs for non-compliance with loan terms by borrowers. This step would go a long way to help small businesses.
The Finance Minister further stated that the issue of whether there should be a separate GST on delivery charges of food provided by quick commerce companies and e-commerce apps was discussed at the meeting but no decision has been taken in the matter. It was felt by the Council that more detailed discussions were required on the issue, she added.
The Finance Minister also said that ACC blocks containing more than 50 per cent fly ash will attract 12 per cent GST.
Sitharaman disclosed that no decision has been made regarding the inclusion of Aviation Turbine Fuel (ATF) under the GST framework as several states were opposed to the move. Further discussions are expected on the issue in future meetings.
She further stated that the GoM on health insurance has not received inputs from the insurance regulator IRDAI as yet so more time is required to take a decision on the issue.
The GoM on rate rationalisation also needs additional time as the report is yet to be finalised, she added.
The Finance Minister further said that the Council discussed whether the GST on floor space index (FSI) for construction should be on the reverse charge or forward charge. No decision was taken on the issue as it has implications for the revenue of municipalities and besides, land is a state subject.
She also disclosed that a concept note has been given in-principle approval by the GST Council to bring amendments in GST to make registration easier for small companies who avail low input tax credit. These companies are facing problems in registrations and it has been decided to simplify the system to make the process smoother for them.
The Council has approved an amendment to the definition of prepackaged and labelled items intended for retail sale. The step is aimed at clarifying the definition for all goods as currently there is a lot of confusion on the issue, Sitharaman added.
–IANS
sps/vd
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
