%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(61).png "The 55th meeting of the GST Council took place at Jaisalmer, Rajasthan")
- The meeting was attended by state finance ministers and other key officials.
- The aim was to discuss and recommend changes to the GST framework, including tax rates on various goods and services.
- Key Highlights of the 55th GST Council Meeting:
- Formalization of Special Cess for Disaster Relief: The Council approved a formal procedure for states to levy a special cess to raise funds for disaster relief. This decision came after Andhra Pradesh sought permission to impose a 1% cess on goods and services in the highest tax bracket (28%) to recover from flood-related losses.
- GST Rate on Used Electric Vehicles: The Council increased the GST rate on the sale of all old and used vehicles (including electric vehicles) from 12% to 18%. However, this rate will only apply to businesses and not individual sellers.
- GST Rates on Popcorn: The Council clarified the GST rates on different types of popcorn:
- Plain, unpacked popcorn: 5% GST
- Pre-packed and labeled ready-to-eat popcorn: 12% GST
- Caramelized popcorn: 18% GST
- Other Decisions: The Council also made several other decisions, including:
- Exempting gene therapy treatments from GST
- Reducing GST on fortified rice kernels supplied through the Public Distribution System (PDS)
- Exempting certain inspection equipment for the International Atomic Energy Agency from IGST
- Clarifying the GST treatment of sponsorship services by corporates
- Revising the definition of "pre-packaged and labeled" to cover a wider range of products
Question:
1 What is the revised GST rate on old and used vehicles, including electric vehicles, for businesses?
- A) 5%
- B) 12%
- C) 18%
- D) 28%
