New Delhi: Several crucial recommendations have been made by the GST Council aiming to reduce the tax burden in specific areas. The 55th GST Council meeting was held under the chairmanship of Union Finance Minister Nirmala Sitharaman in Jaisalmer on Saturday. Here are the things that are getting cheaper and costlier after the GST Council meeting: GST Reduction on Fortified Rice Kernel (FRK) The Council has recommended a GST reduction on the Fortified Rice Kernel (FRK) to five percent. FRK is classified under HS Code 1904. After the reduction FRK will be more affordable and accessible. GST Reduction on Gene Therapy The Council has put forth the recommendation to completely remove GST from gene therapy recognising its pivotal role in healthcare and the urgent need to make it more accessible for those in need. GST Exemption on Contributions to Motor Vehicle Accident Fund The Council’s proposal states that general insurance companies’ contributions - that come from third-party motor vehicle premiums specifically for the Motor Vehicle Accident Fund - should be free from GST. It aims at easing the way these contributions are gathered and used. No GST on voucher transactions The GST Council has clarified that GST wont be applied on transactions involving vouchers since these are not viewed as a provision of goods or services. Conveniently updates are being made to revamp the rules concerning vouchers. Banks NBFCs Penal Charges Penal charges levied by banks and NBFCs from borrowers for non-compliance with loan terms don’t fall under GST bracket. GST Reduction in Pre-Deposit for Appeals The GST Council has proposed a reduction in the required pre-deposit amount for lodging appeals to the Appellate Authority. This is specifically applicable in cases where the order involves only penalties. GST Council Meeting: Cheaper and Dearer Exemption for LRSAM System Equipment: The IGST exemption will be extended to various components like systems sub-systems parts tools test equipment and software that are essential for assembling or manufacturing the LRSAM system as per Notification 19/2019-Customs. Reduction of Compensation Cess: The rate of Compensation Cess will be reduced to 0.1% on supplies to merchant exporters aligning it with the GST rate on such supplies. Exemption for IAEA Equipment: The IGST exemption will apply to the import of all equipment and consumable samples brought by the Inspection Team of the International Atomic Energy Agency (IAEA) subject to specific conditions. Concessional GST Rate on Food Inputs for Government Programs: A concessional 5% GST rate will be applied to food inputs used for food preparations intended for free distribution under government programs to economically weaker sections following existing guidelines.   Services Sponsorship Services Under Forward Charge Mechanism: Sponsorship services provided by corporate bodies will now fall under the Forward Charge Mechanism. Exemption for Contributions to Motor Vehicle Accident Fund: Contributions made by general insurance companies from third-party vehicle premiums to the Motor Vehicle Accident Fund will be exempt from GST. Changes in Tax Rate for Hotel Services: The definition of declared tariff will be removed and the definition of specified premises will be amended to link it to the actual value of accommodation provided by hotels. Composition Levy Scheme Exemption: Taxpayers under the composition levy scheme will be excluded from a specific entry related to renting commercial property to registered persons.   Other Changes Relating to Goods and Services   Increase in GST Rate on Old and Used Vehicles: The GST rate on the sale of old and used vehicles including electric vehicles (EVs) will increase from 12% to 18% with a few exceptions. Clarification on GST for Autoclaved Aerated Concrete (ACC) Blocks: ACC blocks with more than 50% fly ash content will now fall under HS 6815 and attract 12% GST. GST Exemption for Pepper and Raisins from Agriculturists: Pepper (fresh green or dried) and raisins supplied by agriculturists will not be subject to GST. Definition of Pre-Packaged and Labelled Goods: The definition of “pre-packaged and labelled” goods will be updated to include items for retail sale that weigh no more than 25 kg or 25 litres. GST on Ready-to-Eat Popcorn: Ready-to-eat popcorn with salt and spices will attract 5% GST if sold unpackaged and 12% GST if sold pre-packaged. Regularisation of Past Issues: Past issues will be regularized on an “as is where is” basis. GST on Penal Charges by Banks and NBFCs: There will be no GST payable on penal charges levied by banks and non-banking financial companies (NBFCs) for non-compliance with loan terms. Other Proposals Under Consideration The Ministers’ Group has recommended numerous modifications in taxation notably proposing an increment in the Goods and Services Tax (GST) on sin goods like fizzy drinks cigarettes and tobacco from the standing 28% to 35%. Other proposed changes include tweaking the GST rates on apparel bottled water bicycles and exercise notebooks. The suggested rates are 5% for clothing priced up to Rs 1500 18% for clothes priced between Rs 1500 and Rs 10000 and 28% for those beyond Rs 10000. For lavish items such as shoes priced more than Rs 15000 and wristwatches above Rs 25000 the Ministers Group also proposed a 28% GST. In addition theres a recommendation to slash the GST on bulk bottled water (20 liters and above) to 5% and trim the GST on bicycles priced less than Rs 10000 from 12% to 5% thats currently under review. Expect more discussions on insurance and reports from the Ministers Group.