The meeting resulted in several significant decisions aimed at tax rate changes, trade facilitation, and compliance streamlining under GST.
Key-recommendations by GST Council
- Full exemption of GST on gene therapy.
- Exemption of GST on contributions by general insurance companies from third-party motor vehicle premiums for Motor Vehicle Accident Fund.
- Reduction in the GST rate on Fortified Rice Kernel (FRK) to 5%
- Others
- Pepper: whether fresh green or dried and raisins when supplied by an agriculturist is not liable to GST
- Popcorn: when popcorn is mixed with sugar (e.g. caramel popcorn), it would attract 18% GST.
About GST Council
- It is a constitutional body responsible for making recommendations on issues related to the implementation of the GST in India.
- As per Article 279A, inserted by the Constitution (101st) Amendment Act, 2016 , GST Council shall consist:-
- Union Finance Minister (Chairperson)
- Union Minister of State, in-charge of Revenue or Finance (Member)
- The Minister In-charge of finance or taxation or any other Minister nominated by each State Government (Members)
- Decision of the GST Council: It is taken by a majority of not less than three-fourths of weighted votes (75%) of the members present and voting.
- Voting Weightage: 1/3rd to the Centre and 2/3rd to the States
