Sun Dec 22 08:42:26 UTC 2024: **GST Council Announces Price Changes, Postpones Key Decisions**

Jaisalmer, Rajasthan – The 55th GST Council meeting concluded Saturday with a mixed bag of announcements impacting the prices of various goods and services. Union Finance Minister Nirmala Sitharaman chaired the meeting, which resulted in both tax increases and decreases, as well as several key decisions being deferred.

**Price Hikes:** Used car sales by businesses will see a GST increase from 12% to 18%, a move aimed at boosting new EV sales. Pre-packaged and labelled ready-to-eat snacks and popcorn will now attract a 12% GST.

**Price Reductions:** The GST on fortified rice kernels used in public distribution has been slashed from 18% to 5%. AAC blocks containing 50% fly ash will be taxed at 12%. Furthermore, black pepper and raisins sold directly by farmers will be GST exempt.

**Exemptions:** Gene therapy and surface-to-air missiles have been fully exempted from GST. Payment aggregators processing payments under ₹2,000 will also receive an exemption. Penal charges levied by banks and NBFCs on loan defaulters will also not attract GST. The compensation cess rate for merchant exporters has been reduced to 0.1%.

**Postponed Decisions:** Several crucial decisions were deferred, including the imposition of GST on aviation turbine fuel (ATF), quick commerce services, and e-commerce food delivery platforms. A decision on reducing GST rates on insurance premiums has also been postponed pending regulatory comments. The taxation of Floor Space Index (FSI) was also left unresolved. A Group of Ministers (GoM) will be formed to consider allowing states to levy cess under GST to address financial distress following natural disasters. A further review of GST rates on 148 items has also been delayed.

Minister Sitharaman stated that amendments to the GST Acts are underway to simplify registration for small businesses. The Council also acknowledged the need for further consideration regarding rate rationalisation.

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