The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today (21st December 2024) at Jaisalmer, Rajasthan.
Union Finance Minister Nirmala Sitharaman will address the media at 6 PM today following the conclusion of the 55th GST Council meeting held in Jaisalmer, Rajasthan. The meeting, which took place on December 21, 2024, saw participation from representatives of 28 states, two Union Territories, and senior tax officials.
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What do we know so far?
According to the Sources, the Council did not take up the highly anticipated reduction in GST rates on life insurance policies during this session. The Group of Ministers (GoM) tasked with reviewing insurance-related GST structures is expected to revisit the issue in January 2025.
Reportedly, the Council approved several rate changes across goods and services, including:
Popcorn will now attract a 5% GST for unpackaged, ready-to-eat varieties with salt and spices, while pre-packaged and labeled popcorn will incur 12% GST. Caramel popcorn has been classified as a luxury item and will be taxed at 18%. Fortified rice kernels will uniformly attract a 5% GST, regardless of their intended use.
In the automobile segment, the GST on used electric vehicles (EVs) and small petrol/diesel cars has been increased from 12% to 18%. Luxury goods such as high-end wristwatches priced above Rs. 25,000 and premium shoes costing over Rs. 15,000 will now attract a higher GST rate of 28%, up from the previous 18%.
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The All India Consumer Products Distributors Federation raised alarms over a proposed 35% GST on aerated beverages, warning of adverse effects on consumer demand and distributor income. Rising operational costs and slowing demand have added to industry concerns, further complicating the taxation landscape.
Finance Minister Sitharaman is expected to provide clarity on the decisions made and deferred during the Council meeting. Stay tuned for the official announcements at 6 PM to understand the complete impact of the Council’s resolutions.
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