GST Council defers proposal to cut tax on food delivery charges via e-commerce platforms: Sources

The GST Council has deferred the proposal to reduce GST on delivery charges for food delivery via e-commerce platforms, sources informed CNBC TV18. The proposal, which was expected to provide some relief to the food delivery industry, was put on hold for further discussions.

In other GST-related updates, the Council has recommended new tax rates for some goods and services. For instance, new GST rates on popcorn have been proposed: 5% for ready-to-eat, 12% for pre-packaged, and 18% for caramel popcorn.

Sources also revealed that discussions on the Group of Ministers (GoM) report regarding GST rates for the insurance sector have been deferred.

Bihar Deputy Chief Minister Samrat Chowdhary said differences among GoM members led to the delay.

"The decision will be taken up in the next meeting," he stated, adding that the GoM on insurance is likely to meet again in January for further deliberations.

The meeting, which is still ongoing, is attended by several key officials, including Union Minister of State for Finance, P P Choudhary, and Chief Ministers from states like Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha.

Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, along with the Finance Ministers of various states and UTs, are also participating in the discussions.