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    Question

    The GST on used car sales is ____ as per the 55th GST

    council meeting decisions taken in December 2024.
    A Nil Correct Answer Incorrect Answer
    B 5% Correct Answer Incorrect Answer
    C 12% Correct Answer Incorrect Answer
    D 18% Correct Answer Incorrect Answer
    E 28% Correct Answer Incorrect Answer

    Solution

    The apex body in charge of the indirect tax regime, the GST Council at its 55th meeting on December 21, 2024, took the following decisions:

    • raising the levies on used car sales, including electric vehicles, to 18% from 12%
    • sweetened or caramelised popcorn to be taxed at 18%, and levy 5% on the salty and spicy varieties that are not pre-packed and labelled, and 12% for labelled and pre-packaged savoury popcorn
    • reduction in the GST levy on fortified rice kernels that are supplied with an intent to pass them on the public distribution system (PDS) to benefit the poor, to 5% from 18%.
    • Gene therapy, that is now critical for dealing with life-threatening diseases, totally exempted from GST
    • long-range surface to air missiles (LRSAMs) very important in defence - to extend the exemption on the systems, sub-systems, equipment, parts, sub-parts, tools, test equipment and software meant for their assembly or manufacture from Integrated GST levies.

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