Jaisalmer:

The goods and services tax council on Saturday decided to levy an 18 per cent GST on margin value on the sale of used electric vehicles by businesses and agreed to keep jet fuel (ATF) out of the ‘one-nation-one-tax’ regime.

The GST Council in its 55th meeting also decided to clarify on taxability of popcorn, saying caramelised popcorn will continue to attract tax at the rate of 18 per cent. However, pre-packed and spiced popcorn will attract 12 per cent, while 5 per cent will be levied on unpacked and unlabelled ones.

It has been decided to regularise the issues for the past on “as is where is” basis… “It is a clarification being recommended by the GST Council to settle the disputes arising out of interpretation,” an official statement said.

The panel, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs, deferred decisions on reducing tax rate on insurance products as also on levy of the tax on food delivery by aap-based platforms.

The panel cut the tax rate on fortified rice kernels used for public distribution to 5 per cent from 18 per cent, Sitharaman told reporters after the meeting of the Council here.

The Council also decided that no GST will be payable on penal charges levied and collected by banks and NBFCs from borrowers for non-compliance with loan terms.

The panel deferred a decision on reducing the rate of tax on insurance premium, pending comments of the sector regulator, she said.

A group of ministers examining the issue had recommended exempting insurance premiums paid for term life insurance policies from GST and premium paid by senior citizens for health insurance cover. It had also suggested GST exemption on premium paid by individuals, other than senior citizens, for health insurance with coverage of up to Rs 5 lakh.

Alongside, the GoM on rate rationalisation, which is looking at tweaking rates on 148 items, will be given more time to arrive at a decision.

The finance minister said the council decided to raise the rate of tax to 18 per cent from 12 per cent on all used EV sales, just as in case of non-electric vehicles, and it will be applicable only on the value that represents margin – the difference between the purchase price and selling price (depreciated value if depreciation is claimed) – by businesses.

Sale and purchase of used vehicles by individuals will continue to be exempt from GST.

Without naming any state, she said the states wanted to continue to keep aviation turbine fuel (ATF), used in aircrafts, out of the goods and services tax (GST).

When the GST subsumed more than a dozen central and state levies into GST in July 2017, five products – crude oil, petrol, diesel, ATF and natural gas – were kept out of its purview. The central government levies excise duty on them and states levy VAT.

“Every state clearly said that ATF should not come into GST… States did not feel comfortable” to include ATF under the GST, she said.

She said black pepper and raisins when supplied by an agriculturalist is not liable to GST payment.

GoM on health insurance requires more work, she said, adding the same was the case with rate rationalisation GoM.

“No report (on rate rationalisation) has been finalised,” she said.

The GoM on GST compensation cess, under Minister of State for Finance Pankaj Chaudhary, has been given an extended deadline to submit its report. The earlier deadline was December 31, 2024.

On small companies facing registration problems, she said a concept note has received in-principle approvals. This may require amendments to be made to the GST Acts to make it easier for small companies to register.

The Council also decided to set up a Group of Ministers to mull over allowing states to levy cess under GST to overcome financial distress after natural calamities.

Finance ministers of Uttar Pradesh, Telangana and West Bengal would be part of the GoM.

The Council decided to form the GoM after Andhra Pradesh sought Council’s approval to levy 1 per cent cess to overcome financial distress post flood in the state.

No decision was taken on levy of tax on delivery charges by quick commerce and food delivery platforms. “This has been deferred,” she said, adding the Fitment Committee will again review it and the issue being debated is if the tax should be equivalent to 5 per cent GST levied on food or more. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Bengaluru:

South Korea’s Hyundai Motor Group will launch its first India-manufactured electric vehicles by 2025 as the parent of the Hyundai and Kia brands looks to boost its presence in the nascent space dominated by Tata Motors.

Production of Hyundai’s locally manufactured EVs will begin by the end of 2024 and will be launched by 2025, along with Kia’s India-made EV, the Hyundai Motor Group said in a statement on Thursday, adding that it would unveil five models by 2030.

Both brands will use batteries made by Exide Energy Solutions to power their EVs, they had said earlier this month.

India is the biggest market outside North America and Europe for Hyundai, where its unit is headed for a $3 billion IPO – the country’s largest.

Hyundai, India’s no. 2 carmaker, known for its top-selling ‘Creta’ sport utility vehicle, currently sells two electric models in India, the Kona and IONIQ 5, neither of which are produced in the country. Kia’s lone electric offering, the EV6, is imported.

The company also reaffirmed Hyundai’s target of reaching annual production of 1 million by 2025, adding it would expand capacity at Kia to 432,000 from about 300,000. The combined capacity will grow to 1.5 million units.

Earlier this year, Hyundai completed the acquisition of a former Chevrolet plant in Maharashtra as part of its push to get production to 1 million units.

The announcements came during Hyundai Motor Group Executive Chair Euisun Chung’s visit to India – his second in less than a year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)