GST rate cut on fortified rice kernels to 5%, gene therapy exempted

The 55th Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, made multiple key announcements on Saturday. Among other measures, it announced an exemption for payment aggregators handling transactions below Rs 2,000, a reduction in the compensation cess rate to 0.1 per cent on supplies to merchandise exporters, and an extension of the exemption on missile parts.It also decided to exempt gift vouchers, commonly offered by various sectors like retail, from the tax purview. The council also agreed to impose a uniform 18 per cent tax rate on used cars, including electric vehicles, purchased by businesses. Notably, the new tax rate for electric vehicles will not affect individual sellers.
The Finance Minister said that the states have opposed bringing Air Turbine Fuel (ATF) under the purview of GST, so no decision has been taken on it . The Group of Ministers will work further on reducing the GST rate on health insurance. The Finance Minister said that there was also a discussion about the tax on the delivery platform, but no decision has been taken. Ms. Sitharaman said that the Council has given in-principle approval on the concept note to remove the difficulties faced in the registration of small companies.

The GST Council, in the 55th GST Council Meeting, has recommended -

To reduce the rate of Compensation Cess to 0.1% on supplies to merchant exporters at par with GST rate on such supplies.

To exempt from IGST imports of all equipment and consumable samples by Inspection… https://t.co/7EhKUG3IkK

— Nirmala Sitharaman Office (@nsitharamanoffc) December 21, 2024

The 55th meeting of the GST Council held in  Jaisalmer of Rajasthan.The proposal to reduce Goods and Services Tax (GST) on delivery charges for food ordered through e-commerce platforms has been deferred. The Council deferred discussions on insurance matters after the GoM reported a lack of consensus on the issue.