GST council defers tax cut on insurance premiums as Nirmala Sitharaman awaits IRDAI feedback

The Council did not agree on bringing Aviation Turbine Fuel (ATF) into the Goods and Services Tax fold, Sitharaman said.

Updated on: Dec 22, 2024, 01:32:05 IST

By HT News Desk

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The Goods and Services Tax (GST) council deferred the decision to cut tax on insurance premiums as many inputs including IRDAI comments on the matter are still awaited, said Finance Minister Nirmala Sitharaman on Saturday.

Union Finance Minister Nirmala Sitharaman chairs the 55th meeting of the GST Council. (PTI)

The council also agreed to issue a clarification on the 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.

READ | Real estate developers urge government to reconsider 18% GST proposal on FSI, additional FSI under GST

The Council did not agree on bringing Aviation Turbine Fuel (ATF) into the Goods and Services Tax fold, Sitharaman said.

GST Council to set up GoM to look into Andhra's demand for 1% calamity cess

The GST Council has decided to set up a GoM (group of ministers) to look into the demand for a 1 per cent calamity cess on certain luxury goods by Andhra Pradesh to raise resources to mitigate natural disasters.

Andhra Pradesh Finance Minister Payyavula Keshav said that there was a consensus that a GoM be formed.

"The cess will be on luxury items and state-specific levy," Keshav said.

The GST law provides for a levy of special taxes for a specified period to raise additional resources during any natural calamity or disaster.

Earlier in 2018, the GST Council had decided to set up a GoM to look into similar demands made by Kerala.

The GoM in January 2019 decided to approve the levy of 1 per cent 'calamity cess' by Kerala for a period of two years to fund rehabilitation work in the state hit by floods. The goods and services that faced the 1 per cent cess were decided by Kerala.

(With PTI inputs)

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