55th GST Council Meeting
The 55th GST Council Meeting was held in Jaisalmer, Rajasthan under the chairmanship of Finance Minister Nirmala Sitharaman, where many major decisions were taken by consensus, in which GST rates were increased on many items, GST rates were reduced on many items and the decision to reduce GST rates on many items was extended.
The 55th meeting of the GST Council meeting was held on 21 December under the leadership of Nirmala Sitharaman in which major decisions were taken on many topics including GST on sale of electric vehicles, GST on popcorn, GST on insurance. In which the decision to reduce the rates of insurance premium and GST on food items delivered by Swiggy and Zomato app was extended. At the same time, it was decided to impose 18% GST on electric vehicles. Let us know what became cheaper and what became costlier in the GST Council meeting.
GST on Popcorn
In the 55th GST Council Meetingit was decided to impose GST on popcorn, in which it was decided to impose 18% GST, it has been decided to impose three types of GST on popcorn, in which 5% GST can be levied on ready-to-eat popcorn mixed with salt and spices if it is not pre-packaged, and up to 12% GST will be levied on pre-packaged and labelled popcorn, along with this it has been decided to impose 18% GST on caramel popcorn.
GST in Hotels and Restaurants
In the decisions taken in the 55th GST Council Meeting 5055, no change has been made in the rates of GST levied on hotels and restaurants. Hotels and restaurants have 18% GST which was said to be reduced by 5%. This decision has been postponed for now.
GST on Insurance and Food
No decision has been taken yet in the 55th GST Council Meeting on reducing the GST rates on insurance and food. Along with this, no change has been made in the GST rates on online food ordering by Zomato and Swiggy companies.
GST on EV and used vehicles
In the 55th GST Council Meeting, 12% GST was levied on used vehicles and EVs, which has now been increased to 18%. These GST rates have been imposed for buying and selling used cars, in which the GST rates have also been increased for EVs. Whereas, if used vehicles are sold or purchased by common citizens, then only 12% GST will have to be paid on it. Similarly, the same GST rate will be applicable on buying and selling EVs after using them.
GST on Gene Therapy and Fortified Rice
A special decision was taken in the 55th GST Council Meeting regarding Gene Therapy. It was said that Gene Therapy is extremely important for fighting deadly diseases and hence it has been completely exempted from GST. The GST rate on fortified rice has been reduced to 5%.
