Key Decisions and Deferrals at the GST Council Meeting

The GST Council, during its meeting on Saturday, made several significant decisions and deferred others pending further consultations. Among the key decisions, the Council waived tax on gene therapy for cancer treatment and reduced the levy on fortified rice kernels used in the Public Distribution System (PDS) to 5%.

However, the Council deferred a call on lower rates for health and term assurance and food delivery services, acknowledging the need for more consultations. Additionally, the panel rejected the inclusion of Aviation Turbine Fuel (ATF) under GST, despite proposals from airlines and the civil aviation ministry.

Finance Minister Nirmala Sitharaman highlighted that the decision on term and health insurance required further consultation, including inputs from the Insurance Regulatory and Development Authority of India (IRDAI). The issue is expected to be discussed within a group of ministers led by Bihar Deputy Chief Minister Samrat Chaudhary.

Other groups of ministers, focusing on rate rationalization and compensation cess, will also undertake further deliberations. The Council also addressed various clarifications and changes, including simplifying the registration regime for small businesses and permitting temporary registration for certain payments.