GST Council: Tax on Used EVs, Popcorn; ATF Stays Out

23 Dec 2024 CW Team

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.

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.

Infrastructure Urban

13 Oct 2025

Daikin Boosts Haryana’s Innovation Push with Rs 10 billion R&D Plan

Japanese multinational Daikin Industries has committed an investment of Rs 10 billion to set up a new research and development centre in Haryana. The proposed facility will focus on advanced technologies and sustainable industrial solutions, marking a significant boost to the state’s innovation and industrial ecosystem. The announcement follows the signing of a Memorandum of Understanding (MoU) in Osaka, Japan, during a visit by a Haryana government delegation held from October 6 to 8. The MoU was signed by Amit Kumar Agrawal, Commissioner and Secretary, Industries and Commerce Department, ..

Building Material

13 Oct 2025

Lloyds Metals to Build Rs 250 billion Steel Plant in Gadchiroli

Lloyds Metals & Energy Limited (LMEL) has announced an investment of Rs 250 billion aimed at transforming Gadchiroli in Maharashtra from a region once associated with the red corridor into a key industrial and growth hub. The company’s plans are centred on establishing an integrated steel production ecosystem, which will contribute significantly to regional development and employment. As part of its expansion strategy, LMEL is setting up a 4.5-million-tonne blast furnace in Gadchiroli, scheduled for completion by 2027–28, along with another 1.2-million-tonne facility in Chandrapur by 2029..

Infrastructure Urban

13 Oct 2025

UPI Crosses 500 Million Users, Fuels MSME and Digital Growth

The Unified Payments Interface (UPI) has achieved a new milestone, surpassing 500 million consumers and 65 million merchants across India. The platform, developed by the National Payments Corporation of India (NPCI), has expanded its reach to nearly 99 percent of the country’s pin codes, underlining its deep penetration into both urban and rural markets. According to a report by NPCI and the Boston Consulting Group (BCG) launched during the Global Fintech Fest 2025, UPI has evolved from being a digital payments mechanism into a key enabler of financial inclusion and small business growth. I..