Key Highlights from the 55th GST Council Meeting
| Category | Details |
|---|---|
| Event | 55th GST Council Meeting |
| Date/Location | Held in Jaisalmer, Rajasthan, under the Chairpersonship of the Union Minister for Finance & Corporate Affairs |
| Participants | Chief Ministers of Goa, Haryana, Jammu & Kashmir, Meghalaya, Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana |
| Key Decisions | |
| Used Electric Vehicles | GST raised to 18% from 12% on used EV sales. GST applies only to the margin value for business sales. No GST on individual-to-individual sales. |
| Bank's Penal Charges | No GST on penal charges by banks and NBFCs for loan term violations. |
| Payment Aggregators | Exemption for payment aggregators handling payments of less than Rs 2,000. Exemption does not apply to payment gateways or other fintech services unrelated to fund settlement. |
| Aviation Turbine Fuel (ATF) | GST Council did not agree to bring ATF under GST due to states' refusal. ATF is part of the crude petroleum diesel basket. 5 products (crude oil, petrol, diesel, ATF, natural gas) kept out of GST. |
| GST Exemptions | Black pepper and raisins supplied by farmers exempted. Gene therapy fully exempted. Integrated GST exemption extended on surface-to-air missiles. |
| Compensation Cess | Reduced to 0.1% on supplies to merchant exporters. |
| Popcorn | Caramelized popcorn taxed at 18% GST. Ready-to-eat popcorn with salt and spices taxed at 5% (if not pre-packaged) and 12% (if pre-packaged). |
| GST Council Overview | |
| About | Constitutional body under Article 279-A (101st Amendment, 2016). Makes recommendations on GST implementation. GST is a value-added indirect tax levied on the supply of goods and services in India. |
| Members | Union Finance Minister (Chairperson), Union Minister of State (Finance), and a finance or any other minister from each state. |
| Nature of Decisions | Supreme Court ruled (Mohit Minerals case, 2022) that GST Council recommendations are not binding, as Parliament and states have simultaneous legislative powers on GST. |