The 55th GST meeting took place with Finance Minister Nirmala Sitharaman at the helm. A bunch of significant decisions were made during this gathering in Jaisalmer, Rajasthan. While popcorn is facing new taxes, there are also updates to the tax rates for rice, insurance, and electric vehicles. Let’s dive into what might get cheaper in the country after this GST meeting and what could see a tax increase.
Insurance and food delivery taxes remain unchanged
The GST Council decided to hold off on lowering taxes for insurance and food delivery services. So, the tax rates for ordering food through platforms like Zomato and Swiggy, as well as for health and life insurance, will stay the same. Hotels and restaurants will continue to charge an 18% GST.
Increased taxes on used electric vehicles
There’s been a shift in the tax rates for electric vehicles as well. New electric vehicles will now have a GST rate of 5%, while used EVs will see a hike up to 18%.
Three taxes on popcorn
In 2023, the popcorn industry raked in Rs 1200 crore. As a result, the GST Council has approved three different taxes on popcorn. Non-branded popcorn with salt and spices will be taxed at 5%, while flavored popcorn will face a 12% GST. For those sweet caramel popcorn lovers, an 18% tax will apply.
What’s getting cheaper?
The GST Council has slashed the tax on fortified rice to 5%. Additionally, gene therapy has been made tax-free. The GST rate on ACC blocks containing ash has also been reduced from 18% to 12%.
