GST Meeting: Prices of Ready-to-Eat Popcorn Rise, Tax Increase on Used Car Sales by Businesses

New Delhi/Jaisalmer, Dec 21 (NationPress) Prices for ready-to-eat popcorn are poised to incur different GST rates depending on its preparation and packaging, a resolution made in the 55th GST Council meeting held on Saturday.

For popcorn that is mixed with salt and spices, it maintains the crucial characteristic of 'namkeens'. This translates to a 5 percent GST when supplied loose or unpackaged, while a 12 percent GST will apply to pre-packaged and labeled popcorn.

However, caramel popcorn and similar variants will incur a higher 18 percent GST, according to informed sources.

Regarding fortified rice kernels (FRK), the Council suggested a reduction in the GST rate from 18 percent to 5 percent, regardless of their end use.

In the construction industry, the Council has provided relief to manufacturers of Autoclaved Aerated Concrete (ACC) blocks. ACC blocks with over 50 percent fly ash content will now fall under ‘HS 6815’ and incur a 12 percent GST, down from the previous 18 percent.

Additionally, during the GST council meeting chaired by Union Finance Minister Nirmala Sitharaman, the rate for the sale of old and used cars, including EVs, by businesses was approved to increase from 12 percent to 18 percent. However, this adjustment will not affect the sale and purchase of such vehicles by individuals.

Currently, all old and used vehicles, including EVs (excluding petrol vehicles with engine capacity of 1,200 cc or more and length of 4,000 mm or more, diesel vehicles with engine capacity of 1,500 cc or more and length of 4,000 mm, and SUVs) are subject to a 12 percent GST.

The Council also clarified that transactions involving vouchers will be regarded as neither a supply of goods nor services and, thus, will not be subjected to taxation.

The GST Council meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, along with Chief Ministers from 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 in attendance.