The 55th GST (Goods and Services Tax) Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, convened in Jaisalmer on December 21, 2024. The council deliberated on several key issues impacting various sectors.


Key Decisions:


1. Tax on Used Electric Vehicles (EVs): The council approved an increase in the GST rate on used electric vehicles to 18%, up from the previous 12%. This adjustment aims to standardize tax rates across vehicle categories. 

File photo of India’s largest electric vehicle charging station in Gurugram | Twitter | @amitabhk87


2. Tax on Food Delivery Services: Discussions were held regarding the GST rates applicable to food delivery platforms. While specific outcomes are pending, the council is considering adjustments to the existing tax structure for these services. 


3. Tax on Popcorn: The GST on popcorn is divided into three simple tax rates:


5% GST: This applies to plain popcorn, the basic version with no added flavors or special ingredients.


12% GST: This is for flavored popcorn, such as buttered or lightly seasoned varieties.


18% GST: This higher rate is for premium popcorn, which could include gourmet flavors or special packaging.


4. Tax Relief for Insurance Premiums: The council discussed potential tax relief measures for life and health insurance premiums. However, a final decision on reducing GST rates for these premiums is pending further discussions. 


5. GST on Gift Vouchers: The council considered the GST implications for gift vouchers. While specific outcomes are yet to be finalized, the council is exploring the possibility of exempting gift vouchers from GST to simplify their taxation. 


Impact on Consumers:


The proposed changes in GST rates are expected to have varied effects on consumers:


Used EVs: The increase in GST on used electric vehicles may lead to higher prices for consumers purchasing pre-owned EVs.


Food Delivery Services: Adjustments in GST rates for food delivery platforms could influence the pricing of food delivery services, potentially affecting consumer costs.


Flavored Popcorn: The proposed tax rate change on flavored popcorn may result in price adjustments for this snack item.


Insurance Premiums: If implemented, tax relief on insurance premiums could make life and health insurance more affordable for consumers.


Gift Vouchers: Exempting gift vouchers from GST could simplify their use and potentially reduce costs for consumers.


As these decisions are subject to final approval and implementation, consumers are advised to stay informed about the official announcements and updates from the GST Council.