Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the 55th meeting of the GST Council in Jaisalmer, Rajasthan, on Saturday. Union Minister for State for Finance Pankaj Chaudhary along with Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan and Telangana, and the Finance Ministers of States and UTs were in attendance at the event, among other officials. Senior Finance Ministry officials were also present in the December 21 GST Council meeting. 

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Here are some of the key takeaways from the 55th meeting of the GST Council:

  • Decision on insurance products deferred for further study  
  • Ready-to-eat popcorn rates changed

    • Sugar- or caramel-mixed popcorn to attract 18 per cent GST
    • Loose masala popcorn to attract 5 per cent GST
    • Packaged and labelled masala popcorn to attract 12 per cent GST GST Council clarifies on popcorn taxation
  • Fortified rice kernels to now attract 5 per cent GST instead of 18 per cent
  • Autoclaved aerated concrete (ACC) with more than 50 per cent fly ash to attract 12 per cent GST 
  • Businesses selling old and used electric vehicles to attract 18 per cent GST instead of 12 per cent (does not apply to the sale and purchase of such vehicles by individuals)
  • Transactions involving vouchers to be treated as neither supply of goods nor of services, hence be free of taxation
  • Rate rationalisation report not tabled; Group of Ministers GST to meet in January 

In its last meeting, in September, the GST Council decided on taxes impacting a number of items and services including certain drugs, snacks, auto parts as well as passenger transport via helicopters.

The GST Council meets periodically to deliberate and decide on various issues related to the indirect tax. 

Over the years, it has been instrumental in deciding key issues related to the GST such as tax rates, exemptions, thresholds and administrative procedures.

The panel takes a consensus-based approach to decide on any aspect being discussed. 

The first GST Council meeting was held in September 2016.