GST Council Meeting: Your caramel popcorn will get expensive but can save on gene therapy for cancer

The Goods and Services Tax (GST) Council has decided to tweak tax on certain products, with caramalised popcorn getting costly while life-saving gene therapy being exempt.

Here's a look at what will be dearer and cheaper

Used vehicles

Union Finance Minister Nirmala Sitharaman on Saturday announced that the council has decided to increase the tax on used cars, including electric vehicles, from 12 per cent to 18 per cent. This is applicable for businesses and not individuals.

Gene therapy

The GST Council has exempted gene therapy (CAR-T cell therapy) for cancer patients from tax. Earlier, a 12 per cent GST was levied for the therapy.

Caramelised popcorn

The 18 per cent GST on caramelised popcorn has been extended. Packaged and labelled ready-to-eat popcorn mixed with salt and spices will be levied a GST of 12 per cent. If it is not packaged and labelled, it will attract 5 per cent GST.

Bank penal charges

The penal charges levied by banks and non-banking financial companies (NBFCs) on borrowers will not attract a GST.

Surface-to-air missiles

The coucil also extended the GST exemption on parts used in manufacturing surface-to-air missiles, including software.

Rice kernels, pepper and raisins

The GST of fortified rice kernels for public distribution will be slashed from 18 per cent to 5 per cent. The council has exempted black pepper and raisins directly supplied by farmers from GST.

Payment aggregators

Payment aggregators handling transactions under Rs 2,000 will be eligible for exemptions. This is not applicable for payment gateways and fintech services.

Pre-deposit for filing appeal

GST Council has approved to cut payment of pre-deposit for filing an appeal before the Appellate Authority, where in only penalty amount is involved.

Tax on insurance

The GST Council has deferred a proposal to cut taxes on life and health insurance premiums