New GST Rates for Popcorn, Rice, and Concrete Explained. Key takeaways from the meeting included tax rate adjustments across various sectors:
Popcorn Taxation: Popcorn with salt and spices (if unpackaged) will attract 5% GST, pre-packaged popcorn will have a 12% GST rate, and caramel-coated popcorn will be taxed at 18%.
Fortified Rice Kernels: The GST rate was standardized at 5%, down from the previous 18%, regardless of end use.
Autoclaved Aerated Concrete (ACC) Blocks: ACC blocks containing more than 50% fly ash will now attract 12% GST, reduced from 18%.
Used Cars and EVs: The Council approved increasing GST on the sale of old and used cars, including smaller petrol/diesel vehicles and electric vehicles, to 18% from the earlier 12%.
Union Minister of State for Finance Pankaj Chaudhary, along with chief ministers, deputy chief ministers, and finance ministers from various states and union territories, attended the meeting alongside officials from the Central Board of Indirect Taxes & Customs (CBIC).
According to various media reports, the Council opted to defer decisions regarding insurance-related GST changes, citing the need for further review following discussions among the Group of Ministers. “Some members said more discussions are required. We (GoM) will meet in January again,” Bihar Deputy Chief Minister Samrat Chaudhary, who leads the GoM on insurance, said.
The GST Council postponed its decision on reducing tax rates for life and health insurance premiums during its 55th meeting held on Saturday. Chaired by Union Finance Minister Nirmala Sitharaman, the meeting saw council members agree that further technical discussions were needed. A Group of Ministers (GoM) has been tasked with additional deliberations on the matter.
The Council’s updated rulings aim to streamline the tax structure on items such as popcorn, fortified rice, and AAC blocks while increasing revenue through adjustments in used vehicle taxation. However, proposals regarding GST on insurance products will continue to be studied before any final decisions are made.