GST Council on Saturday deferred a proposal related to restructuring GST on insurance premiums. However, according to sources, the Council recommended issuing a circular for GST on spiced and salted popcorn along with caramel popcorn.

“For the report which was to be given by the GST GoM, many ministers were of the view that one more meeting should happen. Whether it is for group insurance, individual insurance or senior citizens’ insurance, we will do another meeting for it. We will discuss it all in the next meeting,” said Samrat Chaudhary, Deputy Chief Minister of Bihar and Convenor of the Group of Ministers (GoM) on insurance. Earlier, the GoM was believed to have suggested exemption on health insurance for senior citizens and term life insurance and lowering GST to 5 per cent on health insurance with coverage of ₹5 lakhs. 

Chaudhary, who is also the convenor of GoM on rate rationalization, said that report related with rate on 148 items was not tabled.

Another proposal to lower the tax on food delivery charges by e-commerce operators to 5 per cent from 18 per cent was deferred. 

Meanwhile, sources said that the Council recommended increasing GST on sale of old and used EV and smaller vehicles to 18 per cent from 12 per cent. Also, it has been clarified that 18 per cent rate exists when sold with margin and when bought by business to claim depreciation. All big cars along with SUV will continue to attract 18 per cent GST.

Sources also said that the GST Council recommended 5 per cent GST on ready-to-eat popcorn mixed with salt and spices if not pre-packaged and 12 per cent on pre-packaged and labeled popcorn. However, caramel popcorn will attract 18 per cent GST. Another recommendation was 5 per cent on fortified rice kernels, irrespective of their end-use.