Key Decisions from the GST Council Meeting

The 55th GST Council meeting in Jaisalmer has made significant revisions to tax rates affecting various sectors. Among the notable changes, the council has sanctioned a rate increase to 18% from 12% for transactions involving the sale of old and used cars, including electric vehicles, as reported by sources.

In another decision, Autoclaved Aerated Concrete blocks containing over 50% fly ash will now be classified under HS code 6815, reducing the GST rate to 12% from the previous 18%. The council has also streamlined the taxation structure for fortified rice kernels, implementing a uniform 5% rate regardless of its intended use.

Regarding ready-to-eat popcorn, the council specified that salt and spice-seasoned popcorn will incur 5% GST when sold without packaging and 12% when pre-packaged and labelled. Sugar-coated varieties like caramel popcorn, categorised as confectionery, will attract 18% GST.

The GST council has postponed decisions on insurance-related issues for additional review, following the lack of agreement during the Group of Ministers deliberations on this topic.