- GST Rate Changes: The Council proposed increasing the GST rate from 12% to 18% on the sale of old and used vehicles, including EVs, with specific exceptions for certain petrol and diesel vehicles. GST will only apply to the margin between purchase and selling price.
- Clarifications on Taxable Goods: The Council clarified that Autoclaved Aerated Concrete (ACC) blocks with over 50% fly ash will incur 12% GST, while pepper and raisins supplied by agriculturists will be exempt from GST. Additionally, the classification and GST rates for ready-to-eat popcorn were detailed, depending on packaging and ingredients.
- Compliance and Exemptions: Amendments were made to the definition of ‘pre-packaged and labelled’ goods, and clarifications provided that no GST is due on penal charges from banks and NBFCs for non-compliance with loan terms. Payment aggregators regulated by the RBI are eligible for GST exemptions, while payment gateways are not.
Source
- A2ztaxcorp
- A2ztaxcorp – 55th GST Council recommends changes in GST rates of services
- A2ztaxcorp – 55th GST Council recommends changes in GST Rates of Goods
