GST council defers tax cut on insurance premiums as Nirmala Sitharaman awaits IRDAI feedback | Latest News India

The Goods and Services Tax (GST) council deferred the decision to cut tax on insurance premiums as many inputs including IRDAI comments on the matter are still awaited, said Finance Minister Nirmala Sitharaman on Saturday.

The council also agreed to issue a clarification on the taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax while an 18 per cent GST will be levied if it is caramelised.

There is no change in the tax rate of popcorn and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation regime of popcorn.

The Council did not agree on bringing Aviation Turbine Fuel (ATF) into the Goods and Services Tax fold, Sitharaman said.

GST Council to set up GoM to look into Andhra’s demand for 1% calamity cess

The GST Council has decided to set up a GoM (group of ministers) to look into the demand for a 1 per cent calamity cess on certain luxury goods by Andhra Pradesh to raise resources to mitigate natural disasters.

Andhra Pradesh Finance Minister Payyavula Keshav said that there was a consensus that a GoM be formed.

“The cess will be on luxury items and state-specific levy,” Keshav said.