New Delhi: The GST Council Unveils a Game-Changing Solution

In a significant move to combat tax evasion, the GST Council has approved the 'Track and Trace Mechanism' for goods that are prone to such practices. This innovative system will see a unique mark affixed on these goods or their packaging to monitor their movement throughout the supply chain.

According to the finance ministry, this mechanism will be based on a Unique Identification Marking, providing a legal framework for its development and implementation. This move is expected to significantly enhance the tracing of specified commodities across the supply chain.

In addition to this, the Council announced several other GST-related decisions, including a reduction in the tax rate for fortified rice kernel from 18% to 5%, and the complete removal of GST on gene therapy. The Council also decided to lower the compensation cess rate to 0.1% for supplies to merchant exporters, and granted IGST exemption for IAEA Inspection Team's equipment and consumable sample imports under specific conditions.

Service-related decisions included the approval of GST exemption on contributions made by general insurance companies from third-party motor vehicle premiums to the Motor Vehicle Accident Fund, which provides compensation and cashless treatment to road accident victims.