GST Council Meeting: Tax hiked on Old Cars and EVs, Postpones Insurance Tax Cut”

GST Council Meeting: Surcharged Tax on the Sale of Old Cars; Hiked Insurance Tax Decision Postponed

The GST Council meeting, being held under the chair of Finance Minister Nirmala Sitharaman in the Jaisalmer, Rajasthan, on Saturday, surcharged an 18 per cent GST on the selling of old and used electric vehicles to and small petrol and diesel cars.

The much-awaited proposal to cut GST on insurance premiums was put off for further discussion.

A proposal is there to exempt GST on health insurance premium paid for covering individuals, except senior citizens, up to ₹5 lakh. However, for policies covering more than ₹5 lakh, GST at 18% will continue to apply.

Addressing this, Bihar Deputy Chief Minister Samrat Chaudhary stated that a further meeting is scheduled with the GoM which would again sit to consider cutting down on the tax amount being collected on health insurance policies, including family, personal and senior citizen policies.

On other resolutions, the Council taxed 5% GST on popcorn ready-to-eat prepared with salt and spices while it has imposed 12% GST on packaged and labelled popcorn.

The Council also proposed an 18% GST on caramel popcorn and 5% GST on fortified rice kernels.

It has also decided to impose 18% GST on the sale of old and used electric vehicles (EVs) and small petrol and diesel cars, which is currently at 12%.

Also Read :Mohali: Multi-Storey Building Collapse, Two Dead, Over 10 Feared Trapped