https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

GST Council Approves Track and Trace Mechanism, Reduces Tax Rates on Key Goods and Services

The GST rate on fortified rice kernels (FRK) will be reduced from 18% to 5%, and gene therapy will be exempt from GST
Indian Masterminds Stories

In a significant move to combat tax evasion, the GST Council on Saturday approved the implementation of a Track and Trace Mechanism for commodities prone to evasion. Under this system, a unique identification mark will be affixed to goods or their packages, enabling their traceability throughout the supply chain. This mechanism is set to be enforced through an amendment to the CGST Act, 2017, specifically under Section 148A, which will empower the government to regulate these measures.

The finance ministry explained that the system would create a legal framework for tracking specified commodities, enhancing transparency and reducing leakage in the supply chain. Additionally, the Council clarified that suppliers of online services to unregistered recipients must record the state of the recipient on the tax invoice, which will serve as the recipient’s address for tax purposes.

In terms of GST rates, Finance Minister Nirmala Sitharaman announced several key decisions. The GST rate on fortified rice kernels (FRK) will be reduced from 18% to 5%, and gene therapy will be exempt from GST. The Council also decided to lower the compensation cess to 0.1% on supplies to merchant exporters and exempt IGST on imports of equipment and consumable samples by the International Atomic Energy Agency (IAEA), subject to conditions.

Regarding services, the Council exempted GST on contributions by general insurance companies to the Motor Vehicle Accident Fund, which provides compensation to road accident victims. Additionally, GST on vouchers will be eliminated, as they are neither goods nor services. The Council also approved the amendment of the definition of pre-packaged and labelled goods to include all retail-ready commodities weighing up to 25 kg or 25 liters.

Finally, the Council clarified that penal charges levied by banks and NBFCs on borrowers for non-compliance with loan terms will not attract GST, and recommended reducing pre-deposit requirements for filing appeals involving penalties.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
ACC_Appointments Committee of Cabinet
ACC Approves Major Reshuffle: 15 Bureaucrats, Including 12 IAS, Promoted to Additional Secy; Sudeep Jain Named NCW Member Secy
IAS Aunjaneya Kumar Singh IAS Anjaneya Singh
IAS Aunjaneya Singh Stays in UP, Centre Approves One-Year Extension After 48-Hour Exit
Chhattisgarh CM Investment Japan visit (3)
Chhattisgarh Woos Japanese Investors in Osaka, Signs $11.45 Million MoU with Sartaj Foods
MP Power Sector Recruitment 2025
MP CM Mohan Yadav to Distribute Appointment Letters to 1,060 Power Sector Recruits in Bhopal on August 26
UPSC Easy paper
UPSC Mains Essay Topics 2025: A Test of Thought Leadership, Not Just Writing Skills
Mumbai Chalta Hai MGL Par
MGL Launches Brand Campaign ‘Mumbai Chalta Hai, MGL Par’ to Celebrate Its Vital Role in City’s Pulse
Sonali Mishra motivates
UP Cadre IPS Sonali Mishra Inspires NCC Cadets in Bareilly, Emphasizes Power of the Uniform
NHPC Resized
NHPC’s Solar Expansion: 300 MW Bikaner Project Full Commissioning Now Due in September
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-08-25 at 13.56
Operation Hunt: IPS Dr. Karanraj Vaghela’s Mission to Nab Valsad’s Most Wanted
Dr
Resisted Flawed Schemes, Transferred Thrice In Three Months, Found Solace In Writing
WhatsApp Image 2025-08-11 at 4.48
IAS SVR Srinivas on Mumbai Trans Harbour Link, Tough Calls, and the Real Power of IAS Officers | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ACC_Appointments Committee of Cabinet
ACC Approves Major Reshuffle: 15 Bureaucrats, Including 12 IAS, Promoted to Additional Secy; Sudeep Jain Named NCW Member Secy
IAS Aunjaneya Kumar Singh IAS Anjaneya Singh
IAS Aunjaneya Singh Stays in UP, Centre Approves One-Year Extension After 48-Hour Exit
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-08-25 at 13.56
Dr
WhatsApp Image 2025-08-11 at 4.48
ADVERTISEMENT
ADVERTISEMENT