Many important decisions were taken in the meeting of GST Council (Goods and Services) chaired by Finance Minister Nirmala Sitharaman. In the meeting, GST rates on many goods and services were reduced or abolished completely. At the same time, there are some services and things on which GST rates have been increased. The goods and services on which GST rates have been reduced include fortified rice, bricks made from 50 percent fly ash and black pepper and raisins.
Apart from this, compensation cess for merchant exporters has been reduced. Similarly, relief from GST has been given to gene therapy, skill training partners and payment aggregators. The things on which GST has been increased include old cars and EVs. Here you can check the list of important decisions taken in the 55th meeting of the GST Council held this Saturday in Jaisalmer, Rajasthan.
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These important decisions were taken in GST Council
- GST on old vehicles has been increased from 12% to 18%.
- 18% GST will be levied on the margin value of a used car.
- Payment aggregators will be exempted from GST for transactions less than Rs 2,000. A payment aggregator is a third-party service provider that helps merchants accept payments. Like Razorpay, PayU, Google Pay, Amazon Pay
- The GST rate on fortified kernel rice has been reduced to five percent.
- Autoclaved Aerated Concrete (AAC) blocks, which contain more than 50% fly ash, will now attract 12% GST.
- If black pepper and raisins are supplied from the farmer then no GST will be levied on it.
- IGST exemption on items used in surface-to-air missiles has been increased.
- Compensation cess on supplies to merchant exporters has been reduced to 0.1%.
- Skill training partners have been exempted from GST.
- GST will no longer be levied on fines imposed by banks/NBFCs.
- GST will no longer be applicable on gift voucher transactions. This will provide relief to retailers.
- GST on hotel restaurant food costing Rs 7500 per night will now be 5% instead of 18%.
- A person will not have to pay GST if he sells an old EV.
- If a company sells old EVs then it will have to pay 18% GST.