What Has Become Cheaper & Costlier After GST Changes: Popcorn, Used Cars, Rice & More!


Mohul Ghosh

Mohul Ghosh

Dec 23, 2024


The recent 55th GST Council meeting introduced several changes to Goods and Services Tax (GST) rates, impacting various sectors. Here’s a detailed breakdown:

What Has Become Cheaper & Costlier After GST Changes: Popcorn, Used Cars, Rice & More!

What’s Getting Cheaper?

The following items and services now have reduced GST rates, providing financial relief:

  1. Fortified Rice Kernels (FRK):
    • Old Rate: 18%
    • New Rate: 5% (when supplied via PDS).
  2. Gene Therapy:
    • Old Rate: 12%
    • New Rate: Fully exempt.
  3. Inputs for Food Preparations under Government Schemes:
    • Old Rate: 18%
    • New Rate: 5%.
  4. Systems for Long-Range Surface-to-Air Missile (LRSAM) Assembly:
    • Old Rate: Standard IGST rates applied.
    • New Rate: Fully exempt.
  5. Inspection Equipment for IAEA:
    • Old Rate: Standard IGST rates applied.
    • New Rate: Fully exempt.
  6. Pepper and Raisins (Direct Sales by Agriculturists):
    • Old Rate: Taxable under applicable GST rates.
    • New Rate: Exempt.

What’s Getting Costlier?

The following items and services now have higher GST rates, increasing costs:

  1. Old and Used Vehicles (Including EVs):
    • Old Rate: 12%
    • New Rate: 18%.
  2. Ready-to-Eat Popcorn (Pre-Packaged and Labeled):
    • Old Rate: 5%
    • New Rate: 12%.
    • Caramelized Popcorn:
      • Old Rate: 12%
      • New Rate: 18%.
    • Non-pre-packaged or “namkeen” popcorn: No change (remains at 5%).
  3. Autoclaved Aerated Concrete (ACC) Blocks (with >50% Fly Ash):
    • Old Rate: 5%
    • New Rate: 12%.
  4. Corporate Sponsorship Services:
    • Old Mechanism: Reverse Charge
    • New Mechanism: Forward Charge.

Other Policy Updates:

  1. Vouchers:
    • Clarified as neither goods nor services, exempt from GST.
  2. Penal Charges by Banks/NBFCs:
    • No GST on penalties for loan non-compliance.
  3. Definition of ‘Pre-Packaged and Labeled’:
    • Aligned with the Legal Metrology Act for retail goods ≤25 kg/liters with mandatory labeling.

These updates aim to balance affordability in critical sectors like healthcare and agriculture while optimizing government revenue in others like automobiles and construction.


Mohul Ghosh
Mohul Ghosh
  • 1857 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online