Page 4 - Gst Council

Economic matters should transcend political divides: Nirmala Sitharaman

BS Manthan: Union Finance Minister Nirmala Sitharaman described the ongoing global turbulence as a "splashing" of forces, urging India to actively participate rather than remain a bystander

GST Council to soon take decision on rates, number of slabs: FM Sitharaman

The GST Council will soon take a decision on having fewer and lower rates as the review work is almost complete, Finance Minister Nirmala Sitharaman said on Tuesday. Currently, Goods and Services Tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab. The Council, chaired by Sitharaman and comprising her state counterparts, has set up a group of ministers (GoM) to suggest changes in GST rates as well as reduce slabs. "To be fair to the GST and the ministers who are all in the council, the work on rationalizing and simplifying GST rates has already commenced. In fact, it had commenced nearly three years ago," she said at the India Today-Business Today Post Budget Round Table. Sitharaman said later the scope was widened and now the work is almost complete. Mentioning that she told ministers in the Council to have a

Simplification of policies to be govt's focus for taxation in 2025

Simplification of direct and indirect tax policies will be the main focus area for the government in the New Year after beginning the review of the six-decade-old income tax law and rationalisation of the GST rate in 2024. With monthly gross GST collections stabilising at around Rs 1.8 lakh crore and gross direct tax collections steadily rising at 20 per cent rate, the effort to ease compliance burden for individuals as well as corporates will gain traction. On the GST front, individuals are awaiting a tax cut in life and health insurance premiums, which will bring down the cost of insurance, while businesses are awaiting the operationalisation of the GST Tribunal for faster dispute resolution. Also, the work on rationalising GST rates and slabs has been put in motion with a group of ministers (GoM) deliberating on the changes, but a final decision is expected only by the GST Council, comprising the Centre and state finance ministers. Currently, GST is a four-tier tax structure wit

GST reforms: A roadmap to rationalisation, revenue, and regime evolution

From rate rationalisation to cess management and expanding the GST base, India's evolving tax regime faces critical design and compliance challenges requiring balanced reforms

Customers likely to gain as high-end hotels get GST options on dining

The GST Council decided to suitably amend the CGST Act to link GST on restaurant services with actual room tariff provided by the hotel

GST on caramel popcorn sold in theatres to stay at 5%, govt clarifies

Change in sale of old EVs a simplification measure

Event organisers to gain ITC benefits as GST Council amends sponsorship tax

GST Council brings sponsorship services under forward charge mechanism

Do you need to pay 18% GST on 'loss margin' of EV resale? Explained

GST on resale of used vehicles by businesses has been raised to 18% from 12%, bringing the used EV market at par with other petrol and diesel vehicles

How to tax popcorn? FM's formula sparks outrage against GST system

A finance ministry spokesperson, the GST Council Secretariat and a spokesman for the ruling Bharatiya Janata Party did not respond to requests for comment on the controversy

Priynaka slams BJP for GST on exam forms, says 'turning dreams to income'

Congress MP Priyanka Gandhi Vadra on Monday attacked the BJP over levying GST on examination forms, saying the government had turned the dreams of parents who saved every penny to prepare their children for exams into a source of income. The Congress general secretary shared an examination form of the Kalyan Singh Super Speciality Cancer Institute, Sultanpur, that showed 18 per cent GST was being charged. "The BJP cannot provide jobs to youngsters but it is definitely rubbing salt on the wounds by charging 18 per cent GST on examination forms. GST is being charged on every government job form, including Agniveer," Priyanka Gandhi said in a post in Hindi on X. "After filling the form, if the paper is leaked due to the failure of the government or if there is corruption, then this money of the youngsters is wasted," she said. Parents sacrifice their lives and save every penny to educate their children and prepare them for the exams but the BJP government has turned their dreams into

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

GST Council paves way for CGST Act amendments during Budget session

FinMin says some changes may take effect from April

55th GST Council takes key decisions, defers rate cuts on insurance premium

GST Council addresses disaster levy, clarifies tax exemptions, and revises ITC norms, while deferring insurance premium GST cut and key rate rationalisation decisions

GST Council issues clarification on proposal of taxation on popcorn

GST Council on Saturday agreed to issue a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax while an 18 per cent GST will be levied if it is caramelised. There is no change in the tax rate of popcorn and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation regime of popcorn. "Ready-to-eat popcorn", which is mixed with salt and spices, and has the essential character of namkeens currently attracts a 5 per cent GST if it is not pre-packaged and labelled. If it is supplied as pre-packaged and labelled, a 12 per cent GST is levied. However, when popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionary, and would therefore be classifiable under HS 1704 90 90 and attract an 18 per cent GST, as per the clarification.

GST Council defers decision to reduce tax on health, life insurance

Bihar's Deputy Chief Minister Samrat Chaudhary said another meeting of the GoM is scheduled for January before the proposal is reintroduced to the GST Council

GoM on rate rationalisation defers report submission to GST Council

The GoM on GST rate rationalisation on Saturday deferred submission of its report, which suggested rate rationalisation in 148 items, to the GST Council, the panel's convenor and Bihar Deputy Chief Minister Samrat Chaudhary said. "Will submit the Group of Ministers (GoM) report on rate rationalisation in next meeting of the Council," Chaudhary told reporters here. The GoM had earlier this month arrived at a broad consensus to rejig tax rates on about 148 items, including levying a higher 35 per cent tax on sin goods, like aerated beverages and tobacco products, as compared to 28 per cent at present. It was widely expected that the GoM would submit its report to the GST Council meeting on Saturday. Currently, GST is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at highest bracket of 28 per cent, while packed food and essential items are at the lowest 5 per cent slab. The GoM had also decided to propose rationalising tax rates

GST Council to decide on insurance premium tax; major rate rejig unlikely

The GST Council, in its meeting on Saturday, is likely to decide on reducing tax rates on life and health insurance premiums, but a decision on big-ticket rate rationalisation, including a higher tax on sin goods, may be deferred. The GoM on GST rate rationalisation had proposed rate rejigs in 148 items in its recommendations, but sources said that consensus is needed to be built on some of the tax changes that the panel has suggested and some more time may be needed for that. The 55th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, is also likely to deliberate on bringing Aviation Turbine Fuel (ATF), a major component for airline industry's operation cost, in the Goods and Services Tax (GST) fold. The GST rate is also proposed to be cut on food delivery platforms like Swiggy and Zomato, to 5 per cent (without input tax credit), from the current 18 per cent (with ITC). However, the Fitment Committee (comprising tax

GST Council may provide exporter status to intermediaries for tax relief

At present intermediary services are charged at 18 per cent under the Central GST Act

GoM proposes GST cuts for health insurance, exemption for term policies

Also recommends reduction of rate on individual health covers from 18% to 5%

Safari Retreats case on GST Council table, SC verdict may be reversed

The SC judgment on the expression "plant or machinery" appears to defeat the intention of the GST Council, the law committee observed