he much-awaited Goods and Services Tax (GST) on life and health insurance programs was postponed in its 55th meeting on Saturday (December 21, 2024) as some members awaited the final decision. Asked for more discussion before taking a decision on the matter.
GST on life and health insurance programs was postponed in its 55th meeting on Saturday
A group of ministers (GoM) headed by Bihar Deputy Chief Minister Samrat Choudhary is now expected to meet again to deliberate on the insurance rates before coming back to the Council with its recommendations.
Apart from this, rate fixing suggestions related to around 150 details including price-based discriminatory charges for clothes, Rs. 5 charges for packaged drinking water and bikes priced below ₹ 10,000 were also sent to the upcoming council meeting.
The council said pre-packaged, labeled ready-to-eat snacks will attract 12 per cent duty, while caramelised popcorn will attract 18 per cent GST. The GST Council on Saturday decided to issue a clarification regarding the tax imposed on popcorn, adding that there will be no change in the tax rate, reported news agency PTI.
Pre-packed and labeled ready-to-eat snacks will attract 12 percent duty, while caramelized popcorn will attract 18 percent GST.
Union Finance Minister Nirmala Sitharaman during the 55th meeting said, pre packed food
“In some countries, mixed, caramelized, plain popcorn is being sold as salted. Sugar is added to caramelized popcorn, so the treatment rate is different from salted popcorn. “ She also confirmed that the Central Board of Indirect Duties and Customs (CBIC) will issue a clarification to clarify the current taxation rules for popcorn.
Ready-to-eat popcorn, which has salt and spices added and which has salty properties, currently attracts 5 per cent GST if it is not pre-packed and labelled. However, if it is pre-packaged and labelled, the duty rate increases to 12 percent.
When popcorn is mixed with sugar (caramel popcorn), its bracket changes to sugar confectionery, which falls under HS law 1704, 90, 90, and hence is subject to 18 percent GST. The Council also reduced the rate on fortified rice kernels to 5 per cent. It was decided that pepper and raisins supplied directly by growers will be exempted from GST.
