The 55th meeting of GST Council has started in Jaisalmer. Many decisions can be taken in this meeting. The meeting is being presided over by Union Finance Minister Nirmala Sitharaman. According to media reports, autoclaved aerated concrete (AAC) blocks, which contain more than 50% fly ash, are placed under HS code 6815. After this change, 12% GST will be imposed on these blocks instead of 18%.
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, complete details regarding tax rates on ready-to-eat popcorn have also been revealed. Popcorn prepared with ordinary salt and spices, if not packaged and labelled, will attract 5% GST. Whereas if it is packaged and labelled, this rate will be 12%. Whereas popcorn prepared from sugar like caramel has been kept in the category of “Sugar Confectionery” and will attract 18% GST.
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 the time being. 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 imposed on 148 items. It also includes a proposal to increase taxes on luxury items like watches, pens, shoes and apparel. Apart from this, there may be discussion on introduction of a separate 35% tax slab for sin goods. It has also been proposed to reduce the tax rate on food delivery platforms like Swiggy and Zomato from 18% to 5%.
