Today i.e. on Saturday, the 55th meeting of the GST Council was held in Jaisalmer, Rajasthan. In which many big decisions were taken under the chairmanship of Finance Minister Nirmala Sitharaman. Updates on these decisions are gradually coming. Earlier in this meeting, it was expected that the tax on health and life insurance premium would be reduced, but for the time being the decision on this has been postponed.
In this 55th meeting of the GST Council, it was decided that some more technicalities need to be removed and the work was assigned to the GoM for further deliberations. Apart from this, many things from popcorn to old cars have become expensive in the meeting. At the same time, if reports are to be believed, then if there is more than 50% fly ash in autoclaved aerated concrete (AAC) blocks, it has been placed in HSN code 6815. Now GST on this category will be reduced from 18% to 12%.
Uniform tax rate on fortified rice
It was decided in the GST Council meeting that a uniform tax rate of 5% will be imposed on fortified rice grains. No matter for what purpose they are used. Earlier, different tax rates were applicable on these rice grains, so this has been done to simplify the tax structure.
Tax increased on popcorn too
Along with this, information has also come out about the tax rates on ready-to-eat popcorn. While the council has clarified that 5% GST will be levied on unpackaged popcorn made with salt and spices. On the other hand, the GST rate will be 12% if it is packaged and labeled. On the other hand, popcorn prepared with caramel has been placed in the category of ‘sugar confectionery’ under the code HS 1704 90 90, on which 18% GST will be levied.
Regarding this meeting, Bihar Deputy Chief Minister Samrat Chaudhary said that another meeting of the GoM is needed to decide the GST rate on group, individual and senior citizen insurance policies. He further said that more in-depth discussion is necessary to reduce GST on insurance policies. It is likely that a decision on this will be taken in the GoM meeting to be held in January.
