The Goods and Services Tax (GST) Council, in its 55th meeting on December 21, 2024, announced several revisions to tax rates affecting various products:
Gst council recommends revised tax rates for popcorn, used cars, and fortified rice / Used Cars
- Business Sales: The GST rate on the sale of used vehicles by registered businesses has been increased to 18% from the previous 12%. This adjustment applies to all used vehicles, including electric vehicles, and is calculated on the margin—the difference between the purchase and selling prices. Sales between individuals remain exempt from GST.
Gst council recommends revised tax rates for popcorn, used cars, and fortified rice / Popcorn
- Pre-Packaged and Labeled: Ready-to-eat popcorn that is pre-packaged and labeled will attract a 12% GST if mixed with salt and spices, aligning it with the tax rate for similar snack items. Caramelized popcorn, due to its sugar content, will be taxed at 18%. Unpackaged and unlabeled popcorn will continue to attract a 5% GST.
Gst council recommends revised tax rates for popcorn, used cars, and fortified rice / Fortified Rice Kernels (FRK)
- The GST rate on fortified rice kernels has been reduced from 18% to 5%. This reduction aims to support public nutritional programs, as FRK is often used in schemes targeting food security and nutrition.
These changes reflect the GST Council’s ongoing efforts to rationalize tax structures across various goods and services, considering both industry practices and consumer interests.