GST Council Decisions: New Rates and Exemptions Unveiled

The GST Council has levied an 18% GST on the margin value of used EV sales and clarified popcorn tax rates. Tax on ATF remains outside GST. The council deferred decisions on insurance premiums, post-flood cess, and quick commerce tax, aiming for further discussions and adjustments.

The GST Council has introduced an 18 percent GST on the margin of used electric vehicle sales, while exempting individual transactions. The same rate will apply to used non-electric vehicles, according to Finance Minister Nirmala Sitharaman.

The panel also addressed tax obligations on various types of popcorn, maintaining an 18 percent tax on caramelised variants, a 12 percent rate on pre-packed spiced options, and 5 percent on unpacked popcorn.

The council decided against including aviation turbine fuel (ATF) under GST, keeping it out of the 'one-nation-one-tax' framework. Other decisions on insurance premium taxes and quick commerce fees have been deferred, with further reviews planned.