The 55th meeting of the GST Council, led by Union Finance Minister Nirmala Sitharaman, took place on Saturday in Jaisalmer, Rajasthan. The gathering, which saw participation from senior officials and representatives of states and union territories, resulted in key decisions focused on tax rate adjustments, trade facilitation, and the simplification of compliance processes under the Goods and Services Tax (GST) framework.
The GST Council has also approved a uniform tax rate of 18% on the sale of all used vehicles, including electric vehicles (EVs).
The GST is applied only on the profit margin of the sale, not on the total sale price. For example, if a used car is purchased for ₹10 lakh and sold for ₹12 lakh, the GST will be calculated on the ₹2 lakh profit margin.
The tax rate on caramelised popcorn has been increased from 5% to 18%. The finance minister explained that when popcorn is mixed with sugar thereby changing its character to sugar confectionery, it would attract an 18% GST. While 5% GST will be charged for loose salted or butter popcorn sold in cinemas. 12% GST for pre-packaged and branded popcorn. And if the consumer is consuming a roti, he is set to pay 5% and while eating parathas, a significantly higher rate of 18%.
While these tax rates were announced, the social media swept with a wave of quirky and humorous comments.
“RIP Middle Class”
Ankit Mayank, a social media user of X, taking a perpetual sarcastic tone posted,
“I bought a car in 2014 for ₹6 lakhs, If I sell it today, I will get ₹1 lakh
As per new rules, I will have to pay 18% GST on the margin (₹6 lakhs – ₹1 lakh = ₹5 lakhs)
So after selling the car,
– I will get ₹10k
– Modi Govt will get ₹90k
-RIP middle class”
UNO reverse Card played
Nirmala Tai has increased GST on used vehicles to 18%. Instead of decreasing taxes on new vehicles, she has played the UNO reverse card.
There’s a huge stockpile of new cars in storage facilities, and the decision is made on behalf of the automobile lobby.
There’s no consumer lobby!!
~ Dr. Ranjan (via the 𝕏 platform)
UNO reverse Card played by the Union Finance Minister Nirmala Sitharaman, says one of the X users ahead of new tax slabs announced. And popcorn became a hot topic, while roti became a luxury as the GST rates popped up.
Making a collarge of Union Finance Minister; one side she sits on a heap of popcorns with notes in her hand. “How to die without paying Taxes ??” he asks from the Union Minister.
As social media continues to buzz with these reactions, Opposition politicians have also weighed in, with Congress leader Jairam Ramesh calling the differentiation in tax rates “absurd” and indicative of a broader issue with the GST framework that complicates rather than simplifies taxation
