Deferral of GST Review on Insurance Premiums
The review of GST levies on life and health insurance premiums was deferred.
A Group of Ministers (GoM) under Bihar Deputy CM Samrat Chaudhary will reconvene to deliberate further and present recommendations.
Postponement of Rate Rationalization Decisions
Recommendations on GST rate rationalization for around 150 items were delayed, including:
Price-based differential levy for garments.
5% GST on packaged drinking water.
5% GST on bicycles priced below ₹10,000.
Extension for GST Compensation Cess Roadmap
Additional time was granted to the GoM tasked with devising a strategy for GST Compensation Cess levies, which are set to end in March 2026.
Rate Changes Agreed Upon
Exemptions Introduced: Gene therapy and long-range surface-to-air missiles (LRSAMs) were exempted from GST.
Increased Levy: GST on used car sales, including electric vehicles, raised from 12% to 18%.
Natural Disaster Tax Levy Policy
A GoM will be formed to examine the imposition of levies by states during natural disasters.
Andhra Pradesh’s request for a uniform policy on this matter was endorsed by the Council.
Tax Clarifications for Agricultural Products and Popcorn
Agricultural Products: Clarifications were provided on GST for pepper and raisin supplies by farmers.
Popcorn GST Rates: 18% GST on sweetened or caramelized popcorn.
5% GST on salty and spicy popcorn (not pre-packaged or labeled).
12% GST on pre-packaged and labeled savory popcorn.
Proposals Deferred for Further Examination
GST on charges collected by municipalities for granting Floor Space Index (FSI) to builders was postponed.
The Centre argued these charges relate to municipalities and local authorities.
Decisions on Gift Vouchers and Penalty Charges
Gift vouchers were deemed non-taxable under GST.
Penal charges imposed by banks and non-banking financial companies for loan condition violations were also exempted.
Reduction of GST on Fortified Rice Kernels
GST on fortified rice kernels reduced from 18% to 5%.
The reduction aims to support public distribution system (PDS) initiatives to benefit economically weaker sections.
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