GST Update on Popcorn
As for popcorn (mixed with salt and spices), it retains the essential ‘salty’ character. This means 5 percent GST is applicable if it is loose or unpackaged, while 12 percent GST is applicable on prepackaged and labeled popcorn. However, caramel popcorn and similar offerings will attract 18 percent more GST, according to people in the know.
Proposed GST deduction for rice kernels
On Fortified Rice Kernel (FRK), the Council proposed to reduce the GST rate from 18 percent to 5 percent, 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 with more than 50% fly ash will now fall under ‘HS 6815’ and attract 12% GST, instead of the higher 18%.
Increase in GST on sale of used and old cars
Further, the GST Council meeting approved raising the rate from 12 percent to 18 percent on sale of old and used cars, including EVs, by businesses. However, this shall not apply to sale and purchase of such vehicles by individuals.
Currently, all old and used vehicles, including EVs (except petrol vehicles with engine capacity of 1,200 cc or more and length of 4,000 mm or more, with engines of 1,500 cc or more) Diesel vehicles with capacity and length of 4,000 mm) and SUVs) attract 12 percent GST.
No GST on Vouchers:
The Council also clarified that transactions involving vouchers will be treated as neither supply of goods nor services and hence will not attract tax.
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 of Arunachal Pradesh, Bihar, Madhya Pradesh. Rajasthan, and Telangana.
Senior officials of the Finance Ministry, including officers from the Departments of Economic Affairs and Expenditure, were also present. (With IANS input)