States not in favour of bringing ATF under GST: Finance Minister Nirmala Sitharaman

Jaisalmer: Finance Minister Nirmala Sitharaman on Saturday said that states did not agree on bringing aviation turbine fuel under the ambit of Goods and Services Tax. “States did not feel comfortable. They didn’t want the ATF because they saw it as part of the crude petroleum diesel basket & therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today,” she said while briefing media on outcome of 55th GST Council meeting here. Besides, she said, no decision was taken with regard to reduction in GST on insurance premiums as Group of Ministers needed more time to study the issue. Many inputs are awaited including the one from insurance regulator IRDAI, she said. Sitharaman provided clarity on several important matters, including taxes on food and non-food items, and taxes on the sale of electric vehicles.

RECOMMENDATIONS OF 55TH GST COUNCIL MEET

 Reduction in rate of Fortifi ed Rice Kernel (FRK), classifi able under 1904, to 5% from 12%

 GST Council recommends to fully exempt GST on gene therapy

 Exemption of GST on contributions by general insurance companies from 3rd-party motor vehicle premiums for Motor Vehicle Accident Fund  12% GST on ACC blocks containing 50% fl y ash

 No GST on vouchers

 No GST is applicable on ‘penal charges’ imposed and collected by banks and NBFCs for borrowers’ non-compliance with loan terms