The 55th GST Council meeting, held on December 21, 2024, in Jaisalmer, Rajasthan, marked a turning point in India’s tax regime. Led by Union Finance Minister Nirmala Sitharaman, the council made several key decisions that will have far-reaching implications across various sectors. Let’s delve into the highlights of this pivotal meeting and understand how it is set to impact businesses and individuals nationwide.
Fortified Rice Kernel (FRK) Rate Reduction: A Boon for the Underprivileged
One of the standout outcomes of the 55th GST Council meeting was the decision to slash the GST rate on Fortified Rice Kernel (FRK) to a mere 5%. This move holds significant importance, especially for economically disadvantaged sections of society who rely on FRK distributed through the Public Distribution System (PDS). By making this essential nutrition source more affordable, the council aims to bolster food security for the underprivileged.
Gene Therapy Exemption: A Step Towards Affordable Healthcare
In a major relief for the healthcare sector, the council exempted gene therapy from GST. This exemption is poised to make advanced medical treatments more accessible and affordable for patients in need of such revolutionary therapies. Additionally, the decision to waive GST on contributions made by general insurance companies from third-party motor vehicle premiums to the Motor Vehicle Accident Fund aims to alleviate financial burdens on insurance providers, potentially leading to reduced premiums for consumers.
Clarity on Vouchers: Simplifying Compliance for Businesses
During the meeting, a crucial clarification was made regarding the treatment of vouchers. The council affirmed that transactions involving vouchers would not be subjected to GST, as vouchers do not fall under the category of goods or services. This clarification puts an end to longstanding ambiguity and streamlines compliance for businesses utilizing vouchers as part of their sales strategies.
Relief for Borrowers: No GST on Penal Charges Levied by Banks
In a move that benefits borrowers facing non-compliance penalties from banks and NBFCs, the council clarified that no GST is payable on penal charges. This decision eliminates the burden of double taxation on penal charges, providing much-needed relief to borrowers navigating loan terms.
Increased GST Rate on Sale of Old Vehicles: Ensuring Fair Taxation
The council decided to raise the GST rate on the sale of old and used vehicles, including electric vehicles (EVs), from 12% to 18%. However, this higher rate will only apply to the profit margin, ensuring a fair and balanced tax burden. This decision is expected to streamline the used vehicle market and offer clearer tax guidelines for businesses in this sector.
Strengthening Defense Manufacturing: IGST Exemption for LRSAM Systems
To bolster the defense sector, the council extended an Integrated Goods and Services Tax (IGST) exemption to systems, sub-systems, equipment, parts, and software essential for the assembly/manufacture of Long Range Surface-to-Air Missile (LRSAM) systems. This exemption aims to boost domestic defense manufacturing and reduce costs associated with critical defense equipment.
In conclusion, the 55th GST Council meeting unleashed a series of measures designed to simplify the GST structure, provide relief to various sectors, and ensure better compliance with tax regulations. These decisions underscore the council’s commitment to enhancing the efficiency and responsiveness of the GST regime to align with the dynamic needs of the Indian economy.
According to Sant Rampal Ji, to ensure the correctness of your worship, first understand the teachings of scriptures and the guidance of a true spiritual leader. Take initiation (Naam Diksha) from a complete Guru, like Sant Rampal Ji, who imparts true mantras. Follow the prescribed rules of worship, avoiding practices not sanctioned by holy texts.
Seek regular guidance from the Guru or his representatives to stay on the correct path. Engage in devoted worship of the Supreme God Kabir, focusing on inner purity and spiritual practices that lead to liberation and eternal bliss.
To know more download sant rampal ji maharaj application from google play store.
