GST Council Meet: Rate Rationalisation And Health Insurance Decisions Pending; No Tax Change In Popcorn

The Goods and Services Tax Council took many decisions during its 55th meeting on Saturday. The meeting was chaired by Finance Minister Nirmala Sitharaman and comprised state counterparts.

The Group of Ministers has been given more time as requested on tax matter on health insurance, Sitharaman said. The panel wanted inputs from the Insurance Regulatory and Development Authority of India that is essential to form a view on GST insurance matter, she said.

The finance minister clarified that on popcorn if mixed with salt and spices, the GST of 5% applies if it is supplied loose or unpackaged, while 12% GST kicks in for pre-packaged and labeled popcorn. However, if it has added caramalised sugar, the rate will be 18%. This does not mean any new taxation.

A major item before the Council was the GST rate rationalisation panel's report, which has suggested rate tweaks in 148 items. Sitharaman said the Group of Ministers panel has requested more time which has been granted.

The GoM on GST rate rationalisation earlier this month decided to submit before the Council their recommendation to hike tax on sin goods, like aerated beverages, cigarettes, tobacco and related products, to 35% from the present 28%.

The minister said no set deadline has been given to the panel.