GST Council defers key decisions, tackles complexity of tax system

It was clarified that ready-to-eat popcorn mixed with salt and spices attracted a 5 per cent GST rate. It attracts a 12 per cent tax if supplied as pre-packed and labelled

The 55th meeting of the Goods and Services Tax (GST) Council last week took some decisions and deferred some to a later date. Some of the decisions and clarifications once again underlined the inherent complexity of the indirect tax system. In a relief to small borrowers, the Council clarified that no GST was payable on the penal charges levied by lenders for non-compliance with loan terms. Further, it recommended lowering GST on fortified rice kernels of a certain variety and exempting the tax on gene therapy. The applicable tax rate on the sale of used vehicles, including electric vehicles, was