In a significant overhaul of India's Goods and Services Tax (GST) system, Finance Minister Nirmala Sitharaman announced key changes aimed at simplifying the tax structure and providing relief to consumers.

Key Highlights:

• Gene Therapy Exemption: GST will no longer apply to gene therapy treatments, potentially reducing healthcare costs for patients.

• Restaurant Services Taxation: The decision to tax restaurant services provided by e-commerce platforms at 5% has been deferred. The Fitment Committee will review this matter and present recommendations to the GST Council.

• Aviation Turbine Fuel (ATF): The proposal to include ATF under the GST regime has been rejected by the states, maintaining the current tax structure for aviation fuel.

• Health and Insurance Relief: A Group of Ministers is examining potential GST reductions on health and life insurance premiums, with a focus on policies for senior citizens and coverage up to ₹5 lakh.

• Electric Vehicles (EVs): New EVs will be taxed at 5% GST. Used EVs sold by companies will incur an 18% tax on the margin, while private sales of used EVs remain GST-free.

• Popcorn Taxation: Caramelized popcorn, containing added sugar, will be taxed at a higher rate than plain salted popcorn, aligning with its classification as a sweet snack.

• Black Pepper and Raisins: Black pepper supplied by agriculturalists will be exempt from GST, supporting farmers' income.

• Payment Aggregators: Only payment aggregators handling transactions below ₹2,000 will be eligible for GST exemption, excluding payment gateways and fintech services.

• Bank Penal Charges: Penal charges levied by banks and financial institutions for non-compliance with loan terms will not attract GST, easing the financial burden on borrowers.

These changes reflect the GST Council's commitment to streamlining the tax system and providing targeted relief to various sectors.