Buying old electric and small cars will be expensive, GST increased from 12% to 18%

Buying old cars from registered sellers will become expensive in the upcoming time. The reason for this is that the GST Council has now decided to impose 18% GST instead of 12% on the sale of old electric cars along with old small cars (1200 cc capacity and less than four meters in length).

However, no GST will be levied on sales and purchases of cars as an individual. Such a GST will be levied only on the margin of the registered seller instead of the total value of the old vehicle. In another development, the Council removed the GST on the penal charge or punitive fee, which is imposed on defaults for failing to pay dues or monthly installments (EMI) within the stipulated time.

The finance minister, Nirmala Sitharaman, said after the meeting of the GST Council held in Jaisalmer that this decision would bring great relief to the businessmen. According to the decision of the Council, now 18% GST will be levied on sweet popcorn mixed with caramel. It was told that adding caramel changes its taste, so the GST category of this popcorn changes.

In the case of the remaining salted popcorn, if it is packed and labeled, it will be charged 12% GST, as it was, while without labeling, 5% GST is applicable. The Finance Minister revealed that detailed work has been done to make the process of registration for small-scale enterprises smoother, which is already given an in-principle nod by the Council.

Other major decisions

• Tax on fortified rice given to the poor has been reduced from 18% to 5%
• Gene therapy used in various treatments has been made completely GST-free
• Five% tax will remain on the ingredients used in cooking the food given free of cost to the weaker sections