TaxTMI 
TaxTMI 
1๏ธโฃ ๐ฅ๐ฒ๐ฑ๐๐ฐ๐ฒ๐ฑ ๐๐ผ๐บ๐ฝ๐ฒ๐ป๐๐ฎ๐๐ถ๐ผ๐ป ๐๐ฒ๐๐ ๐ฅ๐ฎ๐๐ฒ ๐ณ๐ผ๐ฟ ๐ ๐ฒ๐ฟ๐ฐ๐ต๐ฎ๐ป๐ ๐๐
๐ฝ๐ผ๐ฟ๐๐ฒ๐ฟ๐
A much-awaited move: ๐๐ผ๐บ๐ฝ๐ฒ๐ป๐๐ฎ๐๐ถ๐ผ๐ป ๐๐ฒ๐๐ ๐ฟ๐ฎ๐๐ฒ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐ฒ๐ฑ ๐๐ผ 0.1% for sales to merchant exporters (traders who buy locally and export).
This aligns with IGST, CGST, and SGST rates, simplifying compliance for exporters.
2๏ธโฃ ๐๐ฆ๐ง ๐ผ๐ป ๐จ๐๐ฒ๐ฑ ๐๐ฎ๐ฟ๐ ๐
GST increased to 18% for old and used vehicles, including EVs, up from the earlier 12% for most vehicles.
๐๐ฒ๐ ๐ฑ๐ฒ๐๐ฎ๐ถ๐น: GST applies only to the ๐บ๐ฎ๐ฟ๐ด๐ถ๐ป (difference between purchase and selling price), ensuring fairness.
๐๐บ๐ฝ๐ฎ๐ฐ๐: Buyers from GST-registered sellers like ๐ฆ๐ฝ๐ถ๐ป๐ป๐ may feel the pinch, but no GST applies to sales by unregistered individuals.
3๏ธโฃ ๐ฃ๐ผ๐ฝ๐ฐ๐ผ๐ฟ๐ป ๐๐น๐ฎ๐๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐๐น๐ฎ๐ฟ๐ถ๐ณ๐ถ๐ฒ๐ฑ ๐ฟ
Salty/spicy popcorn: 5% ๐๐ฆ๐ง (๐ป๐ผ๐ป-๐ฝ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ๐ฑ), 12% ๐๐ฆ๐ง (๐ฝ๐ฎ๐ฐ๐ธ๐ฎ๐ด๐ฒ๐ฑ) under ๐๐ง๐ 2106 9099.
Sweetened versions (e.g., caramel popcorn): 18% ๐๐ฆ๐ง under ๐๐ง๐ 1704 9090.
๐๐ผ๐ป๐๐ฟ๐ผ๐๐ฒ๐ฟ๐๐ ๐๐น๐ฒ๐ฟ๐: Neither classification aligns with ๐๐๐๐๐ผ๐บ๐ ๐ง๐ฎ๐ฟ๐ถ๐ณ๐ณ ๐ฝ๐ฟ๐ถ๐ป๐ฐ๐ถ๐ฝ๐น๐ฒ๐, where sweet and spicy popcorn might better fit ๐๐ง๐ 1904 1090.
4๏ธโฃ ๐๐ง๐ช๐ญ ๐ง๐ฟ๐ฎ๐ป๐๐ฎ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ฆ๐ถ๐บ๐ฝ๐น๐ถ๐ณ๐ถ๐ฒ๐ฑ
Retrospective clarification (effective ๐๐๐น๐ 1, 2017):
Sales of goods stored in ๐๐ฟ๐ฒ๐ฒ ๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐ช๐ฎ๐ฟ๐ฒ๐ต๐ผ๐๐๐ถ๐ป๐ด ๐ญ๐ผ๐ป๐ฒ๐ (๐๐ง๐ช๐ญ) will ๐ป๐ฒ๐ถ๐๐ต๐ฒ๐ฟ ๐ฏ๐ฒ ๐๐ฟ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐ฎ๐ ๐ฎ ๐๐๐ฝ๐ฝ๐น๐ ๐ผ๐ณ ๐ด๐ผ๐ผ๐ฑ๐ ๐ป๐ผ๐ฟ ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐.
This change relieves cross-border traders, extending benefits similar to those for ๐๐๐๐๐ผ๐บ๐-๐๐ผ๐ป๐ฑ๐ฒ๐ฑ ๐ช๐ฎ๐ฟ๐ฒ๐ต๐ผ๐๐๐ฒ๐ (๐๐๐ช).
5๏ธโฃ ๐ฉ๐ผ๐๐ฐ๐ต๐ฒ๐ฟ ๐ง๐ฎ๐
๐ฎ๐๐ถ๐ผ๐ป ๐ฆ๐ถ๐บ๐ฝ๐น๐ถ๐ณ๐ถ๐ฒ๐ฑ ๐๏ธ
Vouchers will now ๐ป๐ฒ๐ถ๐๐ต๐ฒ๐ฟ ๐ฏ๐ฒ ๐๐ฟ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐ฎ๐ ๐ฎ ๐๐๐ฝ๐ฝ๐น๐ ๐ผ๐ณ ๐ด๐ผ๐ผ๐ฑ๐ ๐ป๐ผ๐ฟ ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ๐, akin to "transactions in money" under the earlier service tax regime.
While this change seeks to resolve disputes, the final outcome depends on the specifics in the ๐๐๐ฆ๐ง ๐๐ฐ๐ ๐ฎ๐บ๐ฒ๐ป๐ฑ๐บ๐ฒ๐ป๐๐.
6๏ธโฃ ๐๐ง๐ ๐ฅ๐ฒ๐น๐ถ๐ฒ๐ณ ๐ณ๐ผ๐ฟ ๐-๐๐ผ๐บ๐บ๐ฒ๐ฟ๐ฐ๐ฒ ๐ข๐ฝ๐ฒ๐ฟ๐ฎ๐๐ผ๐ฟ๐
A win for platforms like ๐จ๐ฏ๐ฒ๐ฟ and ๐จ๐ฟ๐ฏ๐ฎ๐ป ๐๐ผ๐บ๐ฝ๐ฎ๐ป๐:
No proportional reversal of ๐๐ป๐ฝ๐๐ ๐ง๐ฎ๐
๐๐ฟ๐ฒ๐ฑ๐ถ๐ (๐๐ง๐) for payments made on behalf of sellers under section 9(5).
Thatโs all from the GST Council for now!
While these updates promise to untangle the GST web (finally!), ๐ฑ๐ผ ๐๐ผ๐ ๐๐ต๐ถ๐ป๐ธ ๐๐ต๐ฒ๐โ๐น๐น ๐บ๐ฎ๐ธ๐ฒ ๐ฎ ๐ฑ๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ฐ๐ฒโ๐ผ๐ฟ ๐ถ๐ ๐ถ๐ ๐ท๐๐๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฎ๐ ๐๐๐๐ฎ๐น?
๐๐ฆ๐ง ๐๐ผ๐๐ป๐ฐ๐ถ๐น'๐ ๐๐ฎ๐๐ฒ๐๐: Whether someone Exports, Drive Used Cars or Snack on Popcorn โ Here's What's Changing!
22 Feb 2025
22 Feb 2025
Written By
Tax Updates: Merchant Exporters' Rate Cut to 0.1%, Used Vehicle GST at 18%, Popcorn Rates Vary by Type
Recent tax updates include a reduction in tax rates for merchant exporters to 0.1%, aligning with IGST, CGST, and SGST, simplifying compliance. The GST on used vehicles, including electric vehicles, has increased to 18%, applied only to the margin between purchase and sale prices. Popcorn is taxed at varying rates: 5% for salty/spicy, 12% for other types, and 18% for sweetened versions. Retrospective changes clarify that goods stored in specific warehouses are treated as exports, benefiting cross-border traders. Vouchers are now considered transactions in money, resolving previous disputes. Platforms like certain e-commerce sites benefit from no proportional GST reversal for seller payments.
Recent tax updates include a reduction in tax rates for merchant exporters to 0.1%, aligning with IGST, CGST, and SGST, simplifying compliance. The GST on used vehicles, including electric vehicles, has increased to 18%, applied only to the margin between purchase and sale prices. Popcorn is taxed at varying rates: 5% for salty/spicy, 12% for other types, and 18% for sweetened versions. Retrospective changes clarify that goods stored in specific warehouses are treated as exports, benefiting cross-border traders. Vouchers are now considered transactions in money, resolving previous disputes. Platforms like certain e-commerce sites benefit from no proportional GST reversal for seller payments.