5% GST on ready-to-eat popcorn with salt and spices (if not pre-packaged), 12% on pre-packaged popcorn, 18% on caramel popcorn, and 5% on fortified rice kernels
GST Council on Saturday deferred a crucial proposal for restructuring GST on insurance premium. Among the other notable decisions was the decision not to implement GST on jet fuel (Aviation Turbine Fuel or ATF) and clarifications for GST on sale of old and used cars as also for various varieties of popcorn.
“Insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) input has not come. So, the Group of Ministers (GoM) requires more time,” Finance Minister Nirmala Sitharaman, who is also the Chairperson of the GST Council, said on the proposal concerning restructuring of GST on insurance premium.
According to Deputy Chief Minister of Bihar, Samrat Chaudhary who heads the GoM, the issue of GST on insurance premium needs more deliberations.
“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. We will discuss it all in the next meeting,” Chaudhary said.
Earlier, the GoM had reportedly suggested exemption on health insurance for senior citizens and term life insurance and lowering GST to 5 per cent on health insurance with coverage of Rs 5 lakhs.
Chaudhary, who is also the convenor of GoM on rate rationalization, said that report related with rates on 148 items was not tabled.
Sitharaman clarified that that GoM on rate restructuring has not come to a final conclusion. “A holistic view has to be taken. The GoM needs more time,” she said. Further, she mentioned that lowering the tax on food delivery charges by e-commerce operators to 5 per cent from 18 per cent was referred to Fitment Committee for more deliberations.
There was a proposal for clarifying applicability of GST on used and old Electric Vehicles (EVs) and smaller petrol and diesel cars.
“At present new EV car attracts 5 per cent GST. So, Centre, having 1/3rd voting right, suggested GST on old and used EV should also be 5 per cent. However, after a detailed deliberation, it was agreed for 18 per cent on the margin for selling old & used EVs,” Sitharaman said. She also clarified that when an individual is selling an old EV to another individual, there will be no GST. However, if registered dealer or platform sells the old car after refurbishing, GST at 18 per cent will be applicable only on margin value.
Talking about popcorns, an issue that had the social media abuzz the whole day, she said that a clarification will be issued for 5 per cent GST on ready to eat popcorn mixed with salt & spices if sold loose. However, if it is pre-packaged and labeled, then GST rate would be 12 per cent, just like namkeens. “There is need for different treatment for added sugar and States also agreed for that,” she said while adding that caramalised popcorn will attract 18 per cent GST.
Source Link: GST Council: Insurance Proposal Deferred, 18% on margin of selling old EVs - The Hindu BusinessLine