The Union Minister (L) said that the State remains dedicated to supporting reforms that simplify the GST framework, ensure fairness, and cater to the unique needs of Arunachal Pradesh.
| Photo Credit: X/@ChownaMeinBJP

Arunachal Pradesh Deputy Chief Minister Chowna Mein stated that the government is committed to support GST reforms for fostering economic growth and ease of compliance for all stakeholders in the State.

Speaking at the 55th GST Council meeting at Jaisalmer in Rajasthan on Saturday (December 21, 2024), Mr. Mein, who also holds the Finance portfolio, said that the state government remained dedicated to support reforms for simplifying GST, an official communique said in Itanagar on Sunday (December 22, 2024).

“Arunachal Pradesh remains dedicated to supporting reforms that simplify the GST framework, ensure fairness, and cater to the unique needs of our State. These efforts align with our vision to promote ease of doing business and accelerate development,” he said.

The meeting chaired by Finance and Corporate Affairs Minister Nirmala Sitharaman, covered a wide range of topics aimed at streamlining the GST framework and ensuring it is more inclusive and effective.

The discussion during the meeting centred on key areas aimed at enhancing the GST framework to drive economic growth and improve taxpayer support.

Also read: GST Council decision may offer solutions to IGST-related issues: Kerala

Proposed amendments to strengthen the legal structure of GST were highlighted, alongside efforts to simplify GST rate structures for goods and services, making compliance easier and fostering economic activities.

Enhancing the grievance redressal mechanism was also emphasised in the meeting to provide better support to taxpayers.

The agenda included expanding exemptions in critical sectors such as health and life insurance and research carried out for wider public good, advancing procedural rules for GST Appellate Tribunals (GSTAT) to streamline dispute resolution, and ensuring timely and fair settlements of IGST revenues to States for greater fiscal stability, the communique said.

Mr. Mein expressed support for the recommendations and updates presented during the meeting, including the minutes of the previous GST Council meeting.

Jaisalmer:

From reducing GST rate on fortified rice kernel (FRK) to fully exempt GST on gene therapy, the 55th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, on Saturday made some key recommendations to provide relief to individuals and businesses.

The Council recommended exemption of GST on contributions by general insurance companies from third-party motor vehicle premiums for Motor Vehicle Accident Fund.

It also recommended no GST on transaction of vouchers as they are neither supply of goods nor supply of services. The provisions related to vouchers is also being simplified.

GST Council clarified that no GST is payable on ‘penal charges’ levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms

The Council recommended reduction of payment of pre-deposit for filing an appeal before the Appellate Authority in respect of an order passed which involves only penalty amount.

It recommended reduction in GST rate on fortified rice kernel (FRK), classifiable under 1904, to 5 per cent, as the commodity is supplied to the weaker sections of society through the public distribution system (PDS).

Under goods category, the meeting decided to extend IGST exemption to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant assembly/manufacture of LRSAM system.

It also recommended to reduce the rate of Compensation Cess to 0.1 per cent on supplies to merchant exporters at par with GST rate on such supplies and exempt from IGST imports of all equipment and consumable samples by Inspection Team of the International Atomic Energy Agency (IAEA) subject to specified conditions.

The GST members also recommended to extend the concessional 5 per cent GST rate on food inputs of food preparations under “HSN 19 or 21” that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.

Under the Services category, the GST Council recommended to bring supply of the sponsorship services provided by the body corporates under Forward Charge Mechanism and exempt GST on the contributions made by general insurance companies from the third-party motor vehicle premiums collected by them to the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988.

This fund is constituted for providing compensation/ cashless treatment to the victims of road accidents including hit and run cases.

It recommended to increase the GST rate from 12 per cent to 18 per cent on sale of all old and used vehicles, including EVs other than those specified at 18 per cent like sale of old and used petrol vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more; diesel vehicles of engine capacity of 1500 cc or more and of length of 4000 mm and SUVs.

The Council also clarified that Autoclaved Aerated Concrete (ACC) blocks containing more than 50 per cent fly ash content will fall under HS 6815 and attract 12 per cent GST.

It further clarified that pepper, whether fresh green or dried pepper and raisins when supplied by an agriculturist, is not liable to GST.

It also clarified that ready-to-eat popcorn which is mixed with salt and spices are classifiable attracts 5 per cent GST, if supplied as other than pre-packaged and labelled, and 12 per cent GST if supplied as pre-packaged and labelled.

However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (eg caramel popcorn), it would attract 18 per cent GST.

The Council has approved an amendment to the definition of prepackaged and labelled items intended for retail sale. The step is aimed at clarifying the definition for all goods as currently there is a lot of confusion on the issue.

The GST Council meeting was attended by Union Minister of State for Finance, Pankaj Chaudhary, along with Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana. Senior officials from the Finance Ministry, including those from the Economic Affairs and Expenditure Departments, were also present.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Union Finance Minister Nirmala Sitharaman chairs the 55th meeting of the GST Council, in Jaisalmer, on December 21, 2024.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman on Saturday (December 21, 2024) said that States did not agree on bringing aviation turbine fuel under the ambit of Goods and Services Tax.

“States did not feel comfortable. They didn’t want the ATF because they saw it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today,” she said while briefing media on the outcome of 55th GST Council meeting in Jaisalmer.

Besides, she said, no decision was taken with regard to reduction in GST on insurance premiums as the Group of Ministers (GoM) needed more time to study the issue.

Many inputs are awaited including the one from insurance regulator IRDAI, she said.

She further said that the GST Council has also deferred the decision with regard to rate rationalisation as more time is required by the GoM for a comprehensive study.

However, the Council made suggestions with regard to GST rate revision on various items including fortified rice kernels and gene therapy.