The Goods and Services Tax (GST) Council on Saturday put off a proposal to restructure GST on insurance premiums. But the council has agreed on several other items of GST rates, such as popcorn, used electric vehicles, and fortified rice kernels.
Insurance Premiums Proposal Delayed The Council decided to put over the proposal pertaining to restructuration of the GST on a variety of insurance products. According to Samrat Chaudhary, Deputy Chief Minister, Bihar and Convener, Group of Ministers (GoM) on insurance further discussions are needed.
“For the report which was to be given by the GST GoM, many ministers were of the view that one more meeting should happen. Whether it is for group insurance, individual insurance, or senior citizens’ insurance, we will do another meeting for it,” said Chaudhary.
Earlier, it was thought that the GoM had suggested exempting GST on health insurance for senior citizens and term life insurance and reducing the GST rate to 5% for health insurance policies up to ₹5 lakhs. All these suggestions will be discussed in the next Council meeting.
Important GST Rate Recommendations
The Council put some proposals on hold but took important decisions on GST rates for some items:
Popcorn:
Ready-to-eat popcorn mixed with salt and spices will attract 5% GST if not pre-packaged.
Pre-packaged and labeled popcorn will attract a 12% GST rate.
Caramel popcorn will be taxed at 18%.
Used Electric Vehicles (EVs) and Smaller Vehicles:
The GST rate for the sale of old and used EVs and smaller vehicles was recommended to increase from 12% to 18%. The 18% rate applies where sold with a margin or purchased by enterprises for depreciation purposes.
Cars and SUVs, These large-sized cars and SUVs would remain subject to 18% GST.
Ragi or Nachni:
Five percent uniform GST on their production irrespective of its consumption purpose.
Other Suggesting Reforms Proposals Proposal for reduction in the GST of food delivery charge made by e-commerce operators from 18% to 5% is put off further deliberation required.
Broader Consequences
These rate adjustments highlight the Council’s ongoing efforts to streamline and rationalize GST while addressing sector-specific concerns. The delayed proposals on insurance premiums and food delivery charges underscore the complexities involved in rate adjustments and the need for consensus among stakeholders.
The decisions of the Council will have implications for consumers and businesses alike, particularly in sectors like food products, insurance, and electric vehicles. Stakeholders now await the outcomes of subsequent discussions, expected to bring clarity to the deferred proposals.
For more online business news visit https://newsnestify.com/
