from popcorn to used cars , GST hits the middle class again
The 55th meeting of the GST Council has started in Jaisalmer. Many decisions can be taken in this meeting. The meeting is being chaired by Union Finance Minister Nirmala Sitharaman. According to media reports, autoclaved aerated concrete (AAC) blocks, which contain more than 50% fly ash, have been placed under HS code 6815. After this change, 12% GST will be levied on these blocks instead of 18%.
Eating popcorn has become expensive
Simplifying the tax structure of fortified rice, the council has decided to levy 5% GST on it, irrespective of the purpose for which it is used. At the same time, full details regarding tax rates on ready-to-eat popcorn have also come out. Popcorn prepared with ordinary salt and spices, if not packaged and labeled, will attract 5% GST. At the same time, if packaged and labeled, this rate will be 12%. While popcorn prepared with sugar like caramel has been placed in the category of “sugar confectionery” and will attract 18% GST.
GST rate hike on old vehicles
The GST rate on the sale of old and used vehicles, including electric vehicles, has been increased from 12% to 18%. The decision on insurance matters has been postponed for now. There was no consensus on this issue in the Group of Ministers (GoM) meeting, so it has been sent for further investigation.
Let us tell you that the Council is reconsidering the tax rates on 148 items. It also includes a proposal to increase tax on luxury items like watches, pens, shoes and apparel. Apart from this, there can be a discussion on the introduction of a separate 35% tax slab for sin goods. A proposal has also been made to reduce the tax rate on food delivery platforms like Swiggy and Zomato from 18% to 5%.
