GST council rejigs rates, defers call on insurance

The Goods and Services Tax Council (GST) in its 55th meeting on Saturday took a slew of decisions to protect the poor, including slashing the tax rate on fortified rice kernels, exempting GST on gene therapy, providing relief to farmers selling black pepper and resins.

- Rajeev Jayaswal

It, however, deferred several contentious issues such as tax rate rationalisation, GST on insurance premia and the fate of compensation cess post-March 2026.

Informing about the deliberations and decisions of the one-day GST Council meeting held in Jaisalmer, Union finance minister Nirmala Sitharaman said the tax rate on fortified rice kernels has been reduced to 5% as it is supplied to the poor under the public distribution system (PDS). Similarly, gene therapy is now "totally" exempted from GST as it is one of key life-saving procedures, she said.

Tax concession has also been given to inputs on food preparations "intended for free distribution" to the economically weaker section under the government programme subject to existing conditions, she said. GST is exempted on black pepper (fresh or dried) and resins if supplied by an agriculturist. But sale and purchase of these commodities by merchants would be taxed, she said.