The 55th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, successfully concluded in Jaisalmer, Rajasthan. The high-level meeting witnessed the participation of Chief Ministers from Goa, Haryana, Jammu & Kashmir, Meghalaya, and Odisha, along with Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana. Finance Ministers from various States and Union Territories also attended the meeting, deliberating on key issues related to the Goods and Services Tax (GST).
Key Recommendations from the 55th GST Council Meeting
The Council made several noteworthy decisions aimed at simplifying tax structures and addressing critical economic issues:
Reduction in GST Rate on Fortified Rice Kernel (FRK): The GST rate on FRK, classified under 1904, has been reduced to 5%.
Exemption on Gene Therapy: The GST Council has recommended a full exemption on GST for gene therapy.
Exemption on Contributions by Insurance Companies: Contributions from general insurance companies to the Motor Vehicle Accident Fund through third-party motor vehicle premiums are now exempt from GST.
Clarification on Vouchers: Transactions involving vouchers are clarified as neither a supply of goods nor services, and hence no GST is applicable. Provisions related to vouchers are also being simplified.
No GST on Penal Charges: Penal charges levied by banks and NBFCs for non-compliance with loan terms will not attract GST.
Simplification of Pre-Deposit for Appeals: The Council recommended reducing the pre-deposit required for filing appeals before the Appellate Authority, specifically for cases involving only penalty amounts.
Importance of the Meeting
The decisions taken at this meeting reflect the government’s intent to streamline taxation, reduce the burden on industries, and support economic growth. By addressing key concerns such as exemption on essential therapies and reducing tax rates on specific commodities, the GST Council continues to ensure balanced and inclusive development.
