55th GST Council Meeting: Things That Could Get Costlier And Cheaper | Details Inside

The 55th GST Council meeting, presided over by Union Finance Minister Nirmala Sitharaman on Saturday, unveiled several key recommendations aimed at simplifying tax procedures and providing relief to individuals and businesses.

Major Decisions:

Photo Credit: PTI

Items Becoming Cheaper:

Fortified Rice Kernels (FRK): GST reduced to 5% when supplied via the Public Distribution System (PDS), benefiting economically disadvantaged sections.

Gene Therapy: Fully exempt from GST to make these medical treatments more accessible.

Food Supplies for Free Distribution: A concessional 5% GST rate extended for food inputs provided under government schemes targeting weaker sections of society.

LRSAM Systems: IGST exemption granted for systems, sub-systems, and tools used in the assembly of Long Range Surface-to-Air Missiles.

Inspection Equipment for IAEA: IGST exemption on imports of inspection equipment and consumable samples by the International Atomic Energy Agency.

Pepper and Raisins by Agriculturists: Clarified as not subject to GST when sold directly by agriculturists.

Items Becoming Costlier:

Used Vehicles (Including EVs): GST raised from 12% to 18% on the sale of used vehicles, excluding certain petrol and diesel models.

Ready-to-Eat Popcorn: Pre-packaged, labelled snacks will attract 12% GST, while caramelised variants will incur 18%. Unlabelled popcorn mixed with salt or spices retains the 5% GST, provided it is not pre-packaged.

Autoclaved Aerated Concrete (ACC) Blocks: 12% GST applicable if they contain over 50% fly ash content.

Corporate Sponsorship Services: Now under the Forward Charge Mechanism, potentially increasing costs for sponsors.

Penalty-Only Appeals: Higher pre-deposits introduced for penalty-only appeals under the Appellate Authority.

Other Notable Changes:

Vouchers: Transactions involving vouchers will not attract GST, as they are neither classified as goods nor services.

Bank Penalty Charges: GST will not apply to penalties imposed by banks and NBFCs for non-compliance with loan terms.

Definition Amendment: The definition of "pre-packaged and labelled" has been updated. It now includes all retail commodities weighing up to 25kg or holding up to 25 litres, which are pre-packed under the Legal Metrology Act or affixed with a label that must comply with the Act's provisions and rules.