New Delhi: The 55th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman in Rajasthan, has rolled out crucial changes to the taxation framework. According to the report, ready-to-eat popcorn is set to attract varying GST rates based on its preparation and packaging, as decided in the 55th GST Council meeting on Saturday.
GST Update On Popcorn
For popcorn (mixed with salt and spices), it retains the essential character of ‘namkeens’. It means a GST of 5 per cent applies if it is supplied loose or unpackaged, while 12 per cent GST will kick in for pre-packaged and labelled popcorn. However, caramel popcorn and similar offerings will attract a higher 18 per cent GST, according to people in the know.
Proposed GST Cut For Fortified Rice Kernels
On fortified rice kernels (FRK), the Council proposed reducing the GST rate from 18 per cent to 5 per cent, irrespective of their end use.
Relief For ACC Block Manufacturers
In the construction sector, the Council provided relief to manufacturers of Autoclaved Aerated Concrete (ACC) blocks. ACC blocks containing more than 50 per cent fly ash content will now fall under ‘HS 6815’ and attract 12 per cent GST, instead of the higher 18 per cent.
GST Hike On Sale Of Used And Old Cars
Moreover, the GST council meeting has approved the increase in rate on sale of old and used cars including EV by businesses, to 18 per cent from 12 per cent. This will, however, not apply to the sale and purchase of such vehicles by individuals.
At the moment, all old and used vehicles, including EVs (other than petrol vehicles of engine capacity of 1,200 cc or more and of length of 4,000 mm or more, diesel vehicles of engine capacity of 1,500 cc or more and of length of 4,000 mm and SUVs) attract 12 per cent GST.
No GST On Vouchers:
The Council also clarified that transactions involving vouchers will be treated as neither a supply of goods nor services and, therefore, will not face taxation.
The GST Council meeting was attended by Union Minister of State for Finance, Pankaj Chaudhary, along with Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Telangana.
Senior officials from the Finance Ministry, including those from the Economic Affairs and Expenditure Departments, were also present. (With IANS Inputs)