GST Council Revises Tax Rates on Popcorn and Used Cars, Defers Key Decisions

The 55th GST Council meeting in Jaisalmer increased taxes on used cars and clarified rates on popcorn, while postponing decisions on health insurance and aviation fuel.

The GST rate on used cars sold by businesses, including electric vehicles, was raised from 12% to 18%, but private sales remain exempt.
Popcorn will now be taxed at varying rates: 5% for unpackaged, 12% for pre-packaged, and 18% for caramelized varieties.
The Council deferred decisions on reducing GST for health insurance premiums and bringing aviation turbine fuel under the GST ambit.
Key exemptions were introduced, including no GST on gene therapy and penal charges imposed by banks for loan non-compliance.
Opposition leaders criticized the tax hikes, alleging they disproportionately burden middle-class families and small businesses.