The 55th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded in Jaisalmer, Rajasthan, with several significant updates and deferred decisions.

Highlights of the meeting:

  1. Deferred proposals:
    • The proposal to reduce GST on delivery charges for food ordered through e-commerce platforms has been reportedly deferred.
    • Discussions on the insurance sector Group of Ministers (GoM) report were also postponed due to differing views among members. These issues will be revisited in the next meeting.
  2. Tax clarifications:
    • GST rates for various popcorn categories were clarified:
      • Ready-to-eat popcorn: 5%
      • Pre-packaged and labeled popcorn: 12%
      • Caramel popcorn: 18%
    • This aims to eliminate confusion regarding tax liabilities on popcorn products.
  3. Aviation-related deliberations:
    • The council discussed the inclusion of aviation turbine fuel (ATF) under GST but reached no conclusion. ATF, along with crude oil, petrol, diesel, and natural gas, has been outside GST’s ambit since its introduction in 2017, despite demands from the aviation industry.

The Council’s decisions reflect the complexity of reaching consensus on critical tax matters, particularly in sectors like insurance and aviation, which require further deliberation. Finance Minister Nirmala Sitharaman is expected to address the media soon to provide additional insights.

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TOPICS: GST