GST Council Meet: Gene therapy fully exempt from GST

Union Finance Minister Nirmala Sitharaman addressed the media today after the 55th GST Council meet in Jaisalmer, Rajasthan. She announced that gene therapy, which is critical for life-saving treatment for life-threatening diseases, has been fully exempted from GST, which was previously set at 12%.

The FM states that black pepper, whether fresh green black pepper or dried black pepper and raisins when supplied by an agriculturist is not liable to GST. Ready-to-eat popcorn will attract a 5% tax, while pre-packaged popcorn will be taxed at 12%. Caramel popcorn will be taxed at 18%.

Sitharaman further announced a reduction in the tax rate on fortified rice kernels, classified under 1904, which has been reduced to 5%. These fortified rice kernels are intended for distribution through the PDS (Public Distribution System) to ensure the poor benefits from these.

GST is not applicable on penal charges imposed by banks and NBFCs on borrowers for non-compliance with loan terms.

The FM announced a reduction in the rate of compensation cess rate to 0.1% on supplies to merchant exporters, at par with the GST rate on such supplies. This measure aims to support the exporters, she adds.

The FM added that to extend the concessional 5% GST on input of food preparations that are supplied for food preparations intended for free distribution to economically weaker sections.

The FM explained that clarifications are being issued for ACC blocks containing over 50% fly ash content. “If it has more than 50% fly ash content, it’ll fall under a particular HS code of 6815 and will attract 12% GST,” she adds.

Only Payment aggregators handling transactions below ₹2,000 payment are eligible for exemptions. “This exemption does not cover payment gateways, and other fintech services, which do not involve settlement of funds,” she notes.