Sun Dec 22 01:39:17 UTC 2024: ## GST Council Postpones Key Decisions, Clarifies Tax Rates on Popcorn and Used EVs

**Jaisalmer, Rajasthan:** The 55th Goods and Services Tax (GST) Council meeting, held on December 21st, concluded with several significant decisions and postponements. While some clarifications were issued regarding existing tax rates, key proposals regarding insurance premiums and food delivery services were deferred.

**Used Electric Vehicles:** The Council decided to levy an 18% GST on the margin value (difference between purchase and selling price) of used electric vehicles sold by businesses. However, private sales of used vehicles will remain GST-exempt.

**Popcorn Clarification:** The Council clarified the taxability of popcorn. Pre-packed and spiced popcorn will attract a 12% GST, while unpacked and unlabeled popcorn will be taxed at 5%. Caramel popcorn will continue to be taxed at 18%.

**Fortified Rice and Bank Penalties:** A positive development saw the GST rate on fortified rice kernels used in public distribution reduced from 18% to 5%. Furthermore, GST will not be levied on penalties imposed by banks and Non-Banking Financial Companies (NBFCs) for loan defaults.

**Postponed Decisions:** Crucially, the Council postponed decisions on reducing GST rates for life and health insurance premiums and on levying GST on food delivery services provided by apps like Swiggy and Zomato. These matters will require further deliberation. Similarly, the inclusion of aviation turbine fuel (ATF) under the GST regime was also rejected due to state-level concerns.

**Calamity Cess:** A Group of Ministers (GoM) will be formed to explore the possibility of allowing states to levy a cess under GST to address financial distress caused by natural calamities. This follows a request from Andhra Pradesh, which suffered significant flood damage.

The meeting highlighted the ongoing complexities of balancing the interests of states and the central government within the GST framework. Further discussions on the postponed issues are expected in the coming months.

Read More