Jaisalmer, 21 December
The GST Council has increased the tax rate on the margin value of old electric vehicles purchased from companies from 12 percent to 18 percent. However, the exemption from GST on the sale of old vehicles privately will continue. Black pepper and raisins sold by farmers will not come under the purview of GST. The Council has decided to form a group of ministers to propose GST to the states to recover from financial crisis due to natural calamities. It will be attended by the finance ministers of Uttar Pradesh, Telangana and West Bengal. Union Finance Minister Nirmala Sitharaman has said that the GST Council has reduced the tax rate on fortified rice from 18 percent to five percent. During the GST Council meeting held here, giving an explanation about the tax on popcorn, it was said that 18 percent tax will be levied on caramelized popcorn. The council deferred a decision on tax rates for companies like Swiggy and Zomato. He said that gene therapy has now been given relief from GST. Sitharaman said that no GST will be payable on the penalty levied by banks or financial institutions on borrowers. Meanwhile, the report of the Group of Ministers on rationalization of tax rates was not presented before the Council. There is also no agreement on bringing Aviation Turbine Fuel (ATF) under GST. -News-Patiala
The decision regarding tax reduction on life and health insurance was postponed
The GST Council has postponed the decision regarding tax reduction on life and health insurance. Some members of the council felt that more deliberations are needed before taking a final decision regarding tax on insurance as several suggestions are awaited, including comments from the insurance watchdog ‘IRDA’. Samrat Chowdhury, Head of the Group of Ministers Committee on Insurance, said that the committee will meet in January. -News-Patiala