55th Meeting of GST Council in Jaisalmer, Rajasthan

The GST Council has made some important recommendations that could affect different sectors. While some decisions are still on hold, the proposed changes might impact prices and consumer choices.

GST Increase on Used Cars and Electric Vehicles

The Council has suggested raising the GST on used cars and electric vehicles (EVs) from 12% to 18%. If approved, it will make these vehicles more expensive and harder for buyers to afford.

Insurance Tax Decisions Delayed

The Council has postponed decisions about GST on insurance policies. It said more discussions are needed before making a final decision, leaving policyholders unsure about any upcoming changes.

Rate Rationalization Still Unresolved

The much-awaited report on the rationalization of tax rates was put in a time-warped status as the GoM couldn’t achieve convergence. The Council decided further discussion on this, stretching the timeline for any conclusive action on the subject.

Popcorn Tax Structure Revised

Popcorn’s GST structure saw a dramatic change to look at differentiated rates according to preparation and packaging:

• Ready-to-eat popcorn seasoned with salt and spices will attract a GST rate of 5%.
• Pre-packaged and labelled popcorn will be taxed at 12%.
• Caramel popcorn will now have an 18% GST, placing it in the category of premium snacks.

If these changes are approved, they will affect how taxes are applied to different businesses and products. The Council’s decisions show how tricky it is to balance earning more revenue while keeping things fair for consumers. More updates are expected as the Council continues to work on pending issues.