What gets cheaper, what is costlier after GST Council meet? Details here

The 55th GST Council meeting, chaired by Union finance minister Nirmala Sitharaman in Jaisalmer, Rajasthan, on Saturday, brought changes affecting the prices of various goods and services. Here's a breakdown of items that will become costlier, those that will get cheaper, and decisions that have been postponed. Also Read: Starbucks strike: Why are the company's employees in the US protesting? What becomes more expensive? 1) Used cars, including used EVs The GST Council in a bid to promote the sales of new EVs has decided to raise the tax rate of used cars which also includes used EVs to 18% from the current 12%.

However, this is only for used cars by businesses. Private individuals can sell such used cars without attracting the GST. 2) Caramelised popcorn Caramelised popcorn will continue to attract an 18% GST, while ‘ready-to-eat popcorn’, mixed with salt and spices, and has the essential character of namkeens, attracts a 5% GST currently if not pre-packaged and labelled.



Also, pre-packaged and labelled ready-to-eat snacks/popcorns will attract 12% GST. Also Read: New Zealand falls into recession with abrupt economic slowdown What becomes cheaper? 1) Gene therapy and IGST The GST Council has totally exempted gene therapy from attracting any GST. Meanwhile, it extended the exemption of IGST on surface-to-air missiles.

2) Rice kernels, AAC blocks, raisins, pepper The GST Council has cut GST rates on the fortified rice kernels used for public distribution to 5% from 18% earlier. AAC blocks with 50% fly ash will get a 12% GST rate. Black pepper and raisins supplied directly by farmers will be exempt from GST.

3) Bank penal charges No GST will be levied on penal charges imposed by banks and non-banking financial companies (NBFCs) on borrowers for not complying with loan terms. 4) Payment aggregators Payment aggregators handling payments less than ₹ 2,000 will be eligible for a GST exemption, but this does not apply for payment gateways or fintech companies. 5) Compensation Cess The compensation cess rate has been reduced to 0.

1% on supplies to merchant exporters, which aligns it with the GST rate on such supplies. 6) Registration of small companies Sitharaman said that amendments to the GST Acts have to be made to make it easier for small companies to get registered. For this, a concept note has received in-principle approvals.

Also Read: How Zomato, Swiggy, Zepto are achieving disruptive 10-min food deliveries Deferred decisions 1) Aviation turbine fuel (ATF) Many states didn't agree on bringing aviation turbine fuel under the GST ambit since it was a part of the crude petroleum diesel basket. Thus, GST was not imposed on it for the time being and the decision has been deferred and no panel will be appointed for this issue.” ATF has also been kept out of the 'one-nation-one-tax' regime.

2) Floor Space Index (FSI) The GST Council could not reach a decision on taxation related to Floor Space Index (FSI), and the matter has been deferred. 3) Calamity cess The Council has decided to set up a Group of Ministers (GoM) to mull over allowing states to levy cess under GST to overcome financial distress after natural calamities. The GST law provides for levy of special taxes for a specified period to raise additional resources during natural calamities or disasters.

4) Quick commerce, ecommerce, food delivery charges The GST Council has deferred the decision to impose GST on quick commerce services, e-commerce, and food delivery platforms as no decision has been reached yet. 5) Health insurance premium The GST Council has also deferred the decision to reduce the GST rate on insurance premiums due to pending comments of the regulator. The GoM had examined exempting insurance premiums for term life insurance policies from GST and also the premium paid by senior citizens for health insurance coverage.

It had also suggested GST exemption on premiums paid by individuals other than senior citizens for health insurance with coverage of up to ₹ 5 lakh. Life and medical insurance premiums attract a GST rate of 18%. 6) Rate rationalisation "No report (on rate rationalisation) has been finalised," Sitharaman said, on the matter of tweaking rates on 148 items.

The GoM will be given more time to decide..