The 55th GST Council meeting, led by Union Minister for Finance & Corporate Affairs Nirmala Sitharaman in Jaisalmer, Rajasthan on December 21, resulted in several important recommendations focused on easing the tax burden and simplifying processes.
Notable Changes After the GST Council Meeting:
- GST Reduction on Fortified Rice Kernel (FRK)
The Council suggested a reduction in the GST rate on Fortified Rice Kernel (FRK), categorized under HS Code 1904, to 5% to make it more affordable and accessible. - GST Exemption for Gene Therapy
A complete GST exemption has been recommended for gene therapy, highlighting its potential in medical treatment and the need to make it more widely available. - Exemption for Contributions to the Motor Vehicle Accident Fund
Contributions made by general insurance companies from third-party vehicle premiums to the Motor Vehicle Accident Fund would be exempt from GST, simplifying the collection and allocation of these contributions. - GST on Voucher Transactions
The Council clarified that voucher transactions would not be subject to GST, as vouchers do not constitute a supply of goods or services. Additionally, provisions related to vouchers are being revised for greater simplicity. - Penal Charges by Banks and NBFCs
It was clarified that penal charges imposed by banks and Non-Banking Financial Companies (NBFCs) for non-compliance with loan terms will not attract GST. - Reduction in Pre-Deposit for Appeals
The Council also recommended a reduction in the pre-deposit required for filing appeals before the Appellate Authority, especially when the order involves only penalties, making the appeals process more accessible and less financially burdensome for taxpayers.
