The Goods and Services Tax (GST) Council, in its 55th meeting , announced several key tax updates, including an 18% GST on the margin value of used electric vehicles (EVs) sold by businesses. However, aviation turbine fuel (ATF) will remain outside the GST regime, following unanimous opposition from states. The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state representatives, reduced the GST on fortified rice kernels for public distribution from 18% to 5%. This decision aligns with broader efforts to make essential food items affordable. Tax Clarifications on Popcorn Caramelised popcorn will attract an 18% GST, while pre-packed and spiced popcorn will be taxed at 12%. Unpacked and unlabelled popcorn will have the lowest tax rate of 5%. Decisions Deferred The panel postponed decisions on reducing GST for insurance premiums and determining tax rates for food delivery services via app-based platforms. A Group of Ministers (GoM) is examining rate exemptions for term life insurance and health insurance premiums for senior citizens. Exemptions and Adjustments Banks and NBFCs will not pay GST on penal charges levied on borrowers for non-compliance with loan terms. Black pepper and raisins supplied by agriculturalists remain exempt from GST. A GoM will explore states' requests to levy cess under GST for financial relief post-natural calamities. ATF Exclusion Maintained Despite proposals to include ATF in GST, states unanimously agreed to keep it excluded, citing discomfort with such integration. ATF, along with crude oil, petrol, diesel, and natural gas, has been outside GST since its inception in 2017. Group of Ministers' Tasks Extended The GoM on rate rationalisation has been granted additional time to review GST rates on 148 items. Similarly, the GoM on GST compensation cess has an extended deadline until December 31, 2024. The Council’s decisions reflect a cautious approach to tax reforms, balancing state concerns with economic priorities while deferring contentious issues for further deliberation.