India’s economy is still the fastest-growing in the world—but is it starting to sputter? With tax cuts and lower interest rates, will this be the fuel needed to power growth, or just a temporary boost?

Can tax cuts kickstart India's slowing growth?

Volkswagen’s Indian unit, Skoda auto Volkswagen India, has filed a legal challenge against the Indian government’s $1.4 billion tax demand, calling it "Impossibly enormous" and contradictory to India's import taxation rules. This is according to an exclusive Reuters report citing company filings.

Report: Volkswagen challenges $1.4 Bn tax demand in India

<p class="p1"><span id="input-sentence~0">The Union Budget 2025-26 continues to offer taxpayers the choice between the old and new tax regimes, each with distinct benefits. Finance Minister Nirmala Sitharaman reaffirmed the government&rsquo;s push toward the new tax regime while retaining the old one for those who benefit from deductions and exemptions.</span><span id="input-sentence~1"><br><br>The old tax regime is based upon a progressive slab structure with tax rates ranging from 5 per cent to 30 per cent, depending on income levels.&nbsp;<br><br>It is beneficial for taxpayers who want to claim various deductions under Section 80C (PPF, ELSS, EPF, life insurance), Section 80D (health insurance), and HRA for salaried individuals.</span><span id="input-sentence~2"> These deductions help in reducing taxable income, making the old regime suitable for those who actively invest in tax-saving instruments.</span></p>
<p class="p1"><span id="input-sentence~2"><strong>Also read: <a href="https://www.wionews.com/india-news/union-budget-2025-indian-fms-focus-on-bihar-sparks-meme-fest-online-nitish-kumar-narendra-modi-8681960">Union Budget 2025: Nirmala Sitharaman's focus on Bihar sparks meme fest online</a></strong><a href="https://www.wionews.com/videos/india-successfully-tests-vshorads-missile-indian-defence-minister-congratulates-drdo-armed-forces-8683139"></a><br><br>The new tax regime, introduced in Budget 2020 and revised in Budget 2023, provides lower tax rates but removes most exemptions and deductions.</span><span id="input-sentence~3"><br><br>However, it includes benefits such as a full tax rebate for individuals earning up to Rs 7 lakh under Section 87A. Additionally, a zero-tax liability now applies to those earning up to Rs 12 lakh, if they utilise standard deductions and the rebate effectively.</span><span id="input-sentence~4">&nbsp;<br><br>This is because under the revised structure, individuals earning up to Rs 7 lakh do not pay tax, and those earning up to Rs 12 lakh can benefit from deductions like the Rs 50,000 standard deduction, further reducing their taxable income.</span></p>

The new tax regime, introduced in Budget 2020 and revised in Budget 2023, provides lower tax rates but removes most exemptions and deductions.

The Union Budget 2025-26 continues to offer taxpayers the choice between the old and new tax regimes, each with distinct benefits. Finance Minister Nirmala Sitharaman reaffirmed the government’s push toward the new tax regime while retaining the old one for those who benefit from deductions and exemptions. The old tax regime is based upon a progressive slab structure with tax rates ranging from 5 per cent to 30 per cent, depending on income levels. It is beneficial for taxpayers who want to claim various deductions under Section 80C (PPF, ELSS, EPF, life insurance), Section 80D (health insurance), and HRA for salaried individuals. These deductions help in reducing taxable income, making the old regime suitable for those who actively invest in tax-saving instruments. Also read: Union Budget 2025: Nirmala Sitharaman's focus on Bihar sparks meme fest online The new tax regime, introduced in Budget 2020 and revised in Budget 2023, provides lower tax rates but removes most exemptions and deductions. However, it includes benefits such as a full tax rebate for individuals earning up to Rs 7 lakh under Section 87A. Additionally, a zero-tax liability now applies to those earning up to Rs 12 lakh, if they utilise standard deductions and the rebate effectively. This is because under the revised structure, individuals earning up to Rs 7 lakh do not pay tax, and those earning up to Rs 12 lakh can benefit from deductions like the Rs 50,000 standard deduction, further reducing their taxable income.

Union Budget 2025: Key differences between new and old tax slabs

US President Donald Trump has warned BRICS member countries against replacing the US dollar as a reserve currency. Trump reaffirmed his 100% tariff threat, which he had made weeks after winning the election. In a statement on Truth Social, Trump emphasized that his administration requires a commitment from BRICS nations to neither create a new currency nor support any other currency to replace the US dollar. If they fail to comply, they will face 100% tariffs. Watch in for more details!

Donald Trump: Will decide on import taxes on Canadian & Mexican oil

President Donald Trump has promised to eliminate taxes on tips, a key campaign pledge aimed at benefiting the hospitality industry. Speaking in Las Vegas at the circa resort and casino, Trump emphasized that service workers’ tips should be entirely tax-free. He also remarked, 'America's decline is over.'

Donald Trump pledges to end tax on tips in Las Vegas

‘America's decline is over,’ says Trump in speech

<p dir="ltr"><span>India's upcoming Union Budget 2025, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, is likely to feature a streamlined customs duty structure, with fewer tax slabs, as part of the government's ongoing initiative to simplify and modernise the country's trade policies.</span></p>
<p dir="ltr"><span>India currently has more than 40 customs duty rates, including specific duties, and the proposed changes aim to streamline the system and reduce complications.</span></p>
<p dir="ltr"><span>For Budget 2025, while the government's focus seems to be the simplification of income tax laws and expanding the income tax base, individuals eagerly await news on the reduction of their income tax outgo.</span></p>
<p dir="ltr"><span>Also read | </span><strong><a href="https://www.wionews.com/india-news/nearly-4-in-5-indian-employers-report-difficulty-finding-skilled-talent-in-2025-report-8646651">Nearly 4 in 5 Indian employers report difficulty finding skilled talent in 2025: Report</a></strong></p>
<h2 dir="ltr"><strong>Changes expected in the new tax regime</strong></h2>
<p dir="ltr"><span>For salaried taxpayers, the standard deduction could be increased from the current Rs 75,000 ($867.46) to Rs 1 lakh ($1156.62). This was last increased in Budget 2024 from Rs 50,000 ($578.31) to Rs 75,000 ($867.46).</span></p>
<p dir="ltr"><span>Extend the tax rebate under section 87A to taxpayers with taxable income up to Rs 1 million ($11566) from the existing limit of Rs 7 lakh ($8096).</span></p>
<p dir="ltr"><span>The government's 'Housing for all' initiative might lead to the introduction of a deduction for interest on loans of up to Rs 2 lakh ($2313.23) for self-occupied house property in the new tax regime. Currently, this benefit is only available under the old tax regime.</span></p>
<p dir="ltr"><span>Also read | </span><strong><a href="https://www.wionews.com/india-news/uber-ola-face-govt-probe-over-allegations-of-differential-pricing-for-iphones-android-8647019">India: Uber, Ola face govt probe over allegations of differential pricing for iPhones, Android</a></strong></p>
<h2 dir="ltr"><strong>Tax benefit for interest on savings accounts and fixed deposits</strong></h2>
<p dir="ltr"><span>To encourage savings when interest rates are low and inflation is high, the government could consider extending the deduction under Section 80TTA. Currently, this section only allows deductions on interest earned from savings accounts, up to a limit of Rs 10,000 ($115.66)</span></p>
<p dir="ltr"><span>Extending this deduction to interest on term deposits and increasing the limit to Rs 50,000 ($578.31) would be a significant incentive for savers. This move would also align with the benefits already available to senior citizens under Section 80TTB, which allows deductions of up to Rs 50,000 ($578.31) on interest from deposits, including fixed deposits and recurring deposits.</span></p>
<h2 dir="ltr"><strong>Income tax benefits on buying Electric Vehicles (EV)</strong></h2>
<p dir="ltr"><span>To boost electric vehicle (EV) adoption, the government could clarify tax benefits for employer-provided EVs and extend the deduction of up to Rs 1,50,000 ($1734.92) per annum on interest paid on EV loans, which currently expires on March 31, 2023.</span></p>
<h2 dir="ltr"><strong>Extending the due date for filing belated or revised tax returns</strong></h2>
<p dir="ltr"><span>Taxpayers face challenges claiming foreign tax credits in India due to differing tax years. To address this, the deadline for filing revised/belated returns should be extended beyond Dec 31 of the assessment year.</span></p>
<p dir="ltr"><em>(With inputs from agencies)</em></p>

India News: Discover how India's Union Budget aims to simplify trade with a streamlined customs duty structure with fewer tax slabs to simplify and modernise the country's trade policies

India's upcoming Union Budget 2025, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, is likely to feature a streamlined customs duty structure, with fewer tax slabs, as part of the government's ongoing initiative to simplify and modernise the country's trade policies. India currently has more than 40 customs duty rates, including specific duties, and the proposed changes aim to streamline the system and reduce complications. For Budget 2025, while the government's focus seems to be the simplification of income tax laws and expanding the income tax base, individuals eagerly await news on the reduction of their income tax outgo. Also read | Nearly 4 in 5 Indian employers report difficulty finding skilled talent in 2025: Report Changes expected in the new tax regime For salaried taxpayers, the standard deduction could be increased from the current Rs 75,000 ($867.46) to Rs 1 lakh ($1156.62). This was last increased in Budget 2024 from Rs 50,000 ($578.31) to Rs 75,000 ($867.46). Extend the tax rebate under section 87A to taxpayers with taxable income up to Rs 1 million ($11566) from the existing limit of Rs 7 lakh ($8096). The government's 'Housing for all' initiative might lead to the introduction of a deduction for interest on loans of up to Rs 2 lakh ($2313.23) for self-occupied house property in the new tax regime. Currently, this benefit is only available under the old tax regime. Also read | India: Uber, Ola face govt probe over allegations of differential pricing for iPhones, Android Tax benefit for interest on savings accounts and fixed deposits To encourage savings when interest rates are low and inflation is high, the government could consider extending the deduction under Section 80TTA. Currently, this section only allows deductions on interest earned from savings accounts, up to a limit of Rs 10,000 ($115.66) Extending this deduction to interest on term deposits and increasing the limit to Rs 50,000 ($578.31) would be a significant incentive for savers. This move would also align with the benefits already available to senior citizens under Section 80TTB, which allows deductions of up to Rs 50,000 ($578.31) on interest from deposits, including fixed deposits and recurring deposits. Income tax benefits on buying Electric Vehicles (EV) To boost electric vehicle (EV) adoption, the government could clarify tax benefits for employer-provided EVs and extend the deduction of up to Rs 1,50,000 ($1734.92) per annum on interest paid on EV loans, which currently expires on March 31, 2023. Extending the due date for filing belated or revised tax returns Taxpayers face challenges claiming foreign tax credits in India due to differing tax years. To address this, the deadline for filing revised/belated returns should be extended beyond Dec 31 of the assessment year. (With inputs from agencies)

Indian Budget 2025: Personal tax reforms–What to expect for individual taxpayers?

The Labour Government’s move to impose a 20% VAT on private school fees is being met with growing concern over its broader implications. Expected to raise £1.5 billion annually to fund state schools, the policy risks pricing middle-class families out of private education, while reports suggest the ultra-wealthy are increasingly relocating to tax havens like Switzerland. Watch in for more details!

UK Families Face Rising Private School Costs

<p><span class="region">New Delhi, India</span>
<p>GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.</p></p>
<p>The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction.</p>
<p><strong>Also read | <a href="https://www.wionews.com/business-economy/55th-gst-council-meeting-key-discussion-points-786140">55th GST council meeting: key discussion points</a></strong></p>
<h2>Memes flood social media</h2>
<p>A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?”</p>
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<p dir="ltr" lang="en">? 5% GST on Non Pre-Packaged Popcorn mixed with salt &amp; spices</p>
<p>? 12% GST on Pre-packaged and labelled Popcorn</p>
<p>? 18% GST on Caramel Popcorn</p>
<p>If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” <a href="https://t.co/Xp6M2oHz6S">pic.twitter.com/Xp6M2oHz6S</a></p>
<p>— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870417952295563676?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>Another meme posted on X by a user criticised the high tax rates.</p>
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<p dir="ltr" lang="en">18% GST on popcorn ?</p>
<p>18% GST on selling old car ? <a href="https://t.co/B3sAsjTS4l">pic.twitter.com/B3sAsjTS4l</a></p>
<p>— Ex Bhakt (@exbhakt_) <a href="https://twitter.com/exbhakt_/status/1870469382067093987?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn.</p>
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<p dir="ltr" lang="en">Even Popcorn reaches 18% GST Slab.</p>
<p>Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a></p>
<p>— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?”</p>
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<p dir="ltr" lang="en">Even Popcorn reaches 18% GST Slab.</p>
<p>Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a></p>
<p>— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it.</p>
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<p dir="ltr" lang="en">If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : <a href="https://t.co/yFRvPOejvv">pic.twitter.com/yFRvPOejvv</a></p>
<p>— THE SKIN DOCTOR (@theskindoctor13) <a href="https://twitter.com/theskindoctor13/status/1870527095102922848?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p><strong>Also read | <a href="https://www.wionews.com/entertainment/shocking-sunny-leones-name-in-chattisgarh-fraud-case-for-married-women-786086">Shocking! Sunny Leone's name in Chattisgarh fraud case for married women</a></strong></p>
<p>“How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn.</p>
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<p dir="ltr" lang="en">How much tax to use this Meme ?<a href="https://twitter.com/hashtag/PopcornTax?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornTax</a> <a href="https://t.co/4Yx1dTv7FK">pic.twitter.com/4Yx1dTv7FK</a></p>
<p>— Rahul (@42pi) <a href="https://twitter.com/42pi/status/1870514096279544247?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa.</p>
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<p dir="ltr" lang="en">We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows:</p>
<p>Plain Masala Dosa - 9% GST</p>
<p>Masala Dosa with Aloo Bhaji - 12% GST</p>
<p>Masala with Aloo Bhaji, Chutney and Sambar - 18% GST <a href="https://t.co/1jsHhE442U">pic.twitter.com/1jsHhE442U</a></p>
<p>— Jawaharlal Nehru (@The_Nehru) <a href="https://twitter.com/The_Nehru/status/1870498314216706397?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>“Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time.</p>
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<p dir="ltr" lang="en">Breaking: Popcorn Ka GST Tadka?</p>
<p>5% GST for the aam janta,</p>
<p>12% GST for the khaas janta,</p>
<p>18% GST for the elite janta enjoying caramel!</p>
<p>Modi ji even found a way to tax timepass! <a href="https://twitter.com/hashtag/PopcornPolitics?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornPolitics</a> <a href="https://t.co/3iQLN8daFY">pic.twitter.com/3iQLN8daFY</a></p>
<p>— Rais Shaikh (@rais_shk) <a href="https://twitter.com/rais_shk/status/1870463141190242422?ref_src=twsrc%5Etfw">December 21, 2024</a></p></blockquote>
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<p>Some memes also surfaced on social media criticising the tax on used cars.</p>
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<p dir="ltr" lang="en">“If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell”</p>
<p>- Nirmala Sitaphalam-G Aka Vasooli Behan <a href="https://t.co/Yp59gDG9i3">pic.twitter.com/Yp59gDG9i3</a></p>
<p>— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870647461985046773?ref_src=twsrc%5Etfw">December 22, 2024</a></p></blockquote>
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<p><em>(With inputs from agencies)</em></p>


The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn



New Delhi, India GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content. The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction. Also read | 55th GST council meeting: key discussion points Memes flood social media A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” ? 5% GST on Non Pre-Packaged Popcorn mixed with salt & spices ? 12% GST on Pre-packaged and labelled Popcorn ? 18% GST on Caramel Popcorn If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” pic.twitter.com/Xp6M2oHz6S — Gurudath Shetty Karkala (@GurudathShettyK) December 21, 2024 × Another meme posted on X by a user criticised the high tax rates. 18% GST on popcorn ? 18% GST on selling old car ? pic.twitter.com/B3sAsjTS4l — Ex Bhakt (@exbhakt_) December 21, 2024 × A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn. Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?” Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it. If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : pic.twitter.com/yFRvPOejvv — THE SKIN DOCTOR (@theskindoctor13) December 21, 2024 × Also read | Shocking! Sunny Leone's name in Chattisgarh fraud case for married women “How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn. How much tax to use this Meme ?#PopcornTax pic.twitter.com/4Yx1dTv7FK — Rahul (@42pi) December 21, 2024 × An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa. We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows: Plain Masala Dosa - 9% GST Masala Dosa with Aloo Bhaji - 12% GST Masala with Aloo Bhaji, Chutney and Sambar - 18% GST pic.twitter.com/1jsHhE442U — Jawaharlal Nehru (@The_Nehru) December 21, 2024 × “Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time. Breaking: Popcorn Ka GST Tadka? 5% GST for the aam janta, 12% GST for the khaas janta, 18% GST for the elite janta enjoying caramel! Modi ji even found a way to tax timepass! #PopcornPolitics pic.twitter.com/3iQLN8daFY — Rais Shaikh (@rais_shk) December 21, 2024 × Some memes also surfaced on social media criticising the tax on used cars. “If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell” - Nirmala Sitaphalam-G Aka Vasooli Behan pic.twitter.com/Yp59gDG9i3 — Gurudath Shetty Karkala (@GurudathShettyK) December 22, 2024 × (With inputs from agencies)

Memes take social media by storm amid clarification over 18% GST on caramelised popcorn

<p>GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.</p>

<p>The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/business-economy/55th-gst-council-meeting-key-discussion-points-786140">55th GST council meeting: key discussion points</a></strong></p>

<h2>Memes flood social media</h2>

<p>A user shared&nbsp;a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?”</p>

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<p dir="ltr" lang="en">📌 5% GST on Non Pre-Packaged Popcorn mixed with salt &amp; spices<br />
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📌 12% GST on Pre-packaged and labelled Popcorn<br />
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📌 18% GST on Caramel Popcorn<br />
<br />
If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” <a href="https://t.co/Xp6M2oHz6S">pic.twitter.com/Xp6M2oHz6S</a></p>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870417952295563676?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>Another meme posted on X by a user criticised the high tax rates.</p>

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<p dir="ltr" lang="en">18% GST on popcorn 🍿<br />
<br />
18% GST on selling old car 🚗 <a href="https://t.co/B3sAsjTS4l">pic.twitter.com/B3sAsjTS4l</a></p>
— Ex Bhakt (@exbhakt_) <a href="https://twitter.com/exbhakt_/status/1870469382067093987?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn.</p>

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<p dir="ltr" lang="en">Even Popcorn reaches 18% GST Slab.<br />
<br />
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a></p>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>Another user depicted&nbsp;edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?”</p>

<div class="ui-state-default" contenteditable="false">
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<p dir="ltr" lang="en">Even Popcorn reaches 18% GST Slab.<br />
<br />
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a></p>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>A user hilariously questioned&nbsp;what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it.</p>

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<p dir="ltr" lang="en">If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : <a href="https://t.co/yFRvPOejvv">pic.twitter.com/yFRvPOejvv</a></p>
— THE SKIN DOCTOR (@theskindoctor13) <a href="https://twitter.com/theskindoctor13/status/1870527095102922848?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/entertainment/shocking-sunny-leones-name-in-chattisgarh-fraud-case-for-married-women-786086">Shocking! Sunny Leone's name in Chattisgarh fraud case for married women</a></strong></p>

<p>“How much tax to use this Meme?” a user satirically wrote&nbsp;while sharing a GIF of a person eating popcorn.</p>

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<p dir="ltr" lang="en">How much tax to use this Meme ?<a href="https://twitter.com/hashtag/PopcornTax?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornTax</a> <a href="https://t.co/4Yx1dTv7FK">pic.twitter.com/4Yx1dTv7FK</a></p>
— Rahul (@42pi) <a href="https://twitter.com/42pi/status/1870514096279544247?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>An X handle that shares memes, poked&nbsp;fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa.</p>

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<p dir="ltr" lang="en">We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows:<br />
<br />
Plain Masala Dosa - 9% GST<br />
<br />
Masala Dosa with Aloo Bhaji - 12% GST<br />
<br />
Masala with Aloo Bhaji, Chutney and Sambar - 18% GST <a href="https://t.co/1jsHhE442U">pic.twitter.com/1jsHhE442U</a></p>
— Jawaharlal Nehru (@The_Nehru) <a href="https://twitter.com/The_Nehru/status/1870498314216706397?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>“Modi ji even found a way to tax timepass!” another user wrote&nbsp;while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time.</p>

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<p dir="ltr" lang="en">Breaking: Popcorn Ka GST Tadka🍿<br />
<br />
5% GST for the aam janta,<br />
12% GST for the khaas janta,<br />
18% GST for the elite janta enjoying caramel!<br />
<br />
Modi ji even found a way to tax timepass! <a href="https://twitter.com/hashtag/PopcornPolitics?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornPolitics</a> <a href="https://t.co/3iQLN8daFY">pic.twitter.com/3iQLN8daFY</a></p>
— Rais Shaikh (@rais_shk) <a href="https://twitter.com/rais_shk/status/1870463141190242422?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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<p>Some memes also surfaced on social media criticising the tax on used cars.</p>

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<p dir="ltr" lang="en">“If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell”<br />
<br />
- Nirmala Sitaphalam-G Aka Vasooli Behan <a href="https://t.co/Yp59gDG9i3">pic.twitter.com/Yp59gDG9i3</a></p>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870647461985046773?ref_src=twsrc%5Etfw">December 22, 2024</a></blockquote>
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<p><em>(With inputs from agencies)</em></p>


GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.

GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content. The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction. Also read | 55th GST council meeting: key discussion points Memes flood social media A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” 📌 5% GST on Non Pre-Packaged Popcorn mixed with salt & spices 📌 12% GST on Pre-packaged and labelled Popcorn 📌 18% GST on Caramel Popcorn If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” pic.twitter.com/Xp6M2oHz6S — Gurudath Shetty Karkala (@GurudathShettyK) December 21, 2024 × Another meme posted on X by a user criticised the high tax rates. 18% GST on popcorn 🍿 18% GST on selling old car 🚗 pic.twitter.com/B3sAsjTS4l — Ex Bhakt (@exbhakt_) December 21, 2024 × A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn. Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?” Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it. If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : pic.twitter.com/yFRvPOejvv — THE SKIN DOCTOR (@theskindoctor13) December 21, 2024 × Also read | Shocking! Sunny Leone's name in Chattisgarh fraud case for married women “How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn. How much tax to use this Meme ?#PopcornTax pic.twitter.com/4Yx1dTv7FK — Rahul (@42pi) December 21, 2024 × An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa. We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows: Plain Masala Dosa - 9% GST Masala Dosa with Aloo Bhaji - 12% GST Masala with Aloo Bhaji, Chutney and Sambar - 18% GST pic.twitter.com/1jsHhE442U — Jawaharlal Nehru (@The_Nehru) December 21, 2024 × “Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time. Breaking: Popcorn Ka GST Tadka🍿 5% GST for the aam janta, 12% GST for the khaas janta, 18% GST for the elite janta enjoying caramel! Modi ji even found a way to tax timepass! #PopcornPolitics pic.twitter.com/3iQLN8daFY — Rais Shaikh (@rais_shk) December 21, 2024 × Some memes also surfaced on social media criticising the tax on used cars. “If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell” - Nirmala Sitaphalam-G Aka Vasooli Behan pic.twitter.com/Yp59gDG9i3 — Gurudath Shetty Karkala (@GurudathShettyK) December 22, 2024 × (With inputs from agencies)

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Rachel Reeves Unveils Largest Tax Hikes in 30 Years

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<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">The Ministry of Road Transport and Highways in India has introduced a significant change to its toll collection system for highways and expressways, set to take effect from Tuesday, September 10, 2024. This new regulation, formalised through an amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allows motorists with vehicles equipped with functional global navigation satellite system (GNSS) devices to travel toll-free for up to 20 kilometers daily.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">This amendment, officially titled the National Highways Fee (Determination of Rates and Collection) Amendment Rules, 2024, marks a shift in how toll fees are calculated and collected. Under the new system, fees will only be charged for distances exceeding the 20-kilometer daily allowance, based on the actual distance traveled.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">The government notification provides specific details about the implementation of this new policy. It states that drivers, owners, or individuals in charge of mechanical vehicles, excluding those with National Permits, will be exempt from user fees for journeys up to 20 kilometers in each direction per day when using the same section of a national highway, permanent bridge, bypass, or tunnel. This exemption applies when the toll is collected through the GNSS-based user fee collection system.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">To encourage the adoption of this new technology, the notification also mentions the possibility of designating exclusive lanes for vehicles equipped with GNSS On-Board Units. As an incentive for compliance, any vehicle entering these lanes without a valid, functional GNSS On-Board Unit will be subject to a penalty fee equivalent to twice the standard user fee applicable at that particular toll plaza.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">This move towards a GNSS-based toll collection system is part of a broader initiative by the highway ministry. In July, the ministry announced plans to implement this system on select national highways as a pilot project, complementing the existing FASTag system. Union Road Transport and Highways Minister Nitin Gadkari revealed that pilot studies for this GNSS-based user fee collection system had already been conducted on two stretches- the Bengaluru-Mysore section of NH-275 in Karnataka, and the Panipat-Hisar section of NH-709 in Haryana.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">To further develop this system, the ministry organised an international workshop for stakeholder consultation on June 25, 2024. A global expression of interest (EOI) was issued on June 7, 2024, with a submission deadline of July 22, 2024, to gather input from a wide range of industry players.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">The National Highways Authority of India (NHAI) intends to implement the GNSS-based electronic toll collection (ETC) system within the framework of the existing FASTag ecosystem. Initially, this will be done using a hybrid model where both the RFID-based ETC and the new GNSS-based ETC systems will operate concurrently.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">The implementation of GNSS-based electronic toll collection in India is expected to bring several benefits to highway users. These include enabling barrier-free, free-flow tolling, which should result in a more seamless and hassle-free driving experience. Moreover, the system allows for distance-based tolling, meaning users will only pay for the specific stretches of national highway they have actually traveled on.</span></span></span></p>

<p style="margin:0cm 0cm 10pt">&nbsp;</p>

<p style="margin:0cm 0cm 10pt"><span style="font-size:11pt"><span style="line-height:115%"><span style="font-family:Calibri,&quot;sans-serif&quot;">Beyond improving the user experience, the GNSS-based collection system is anticipated to enhance the efficiency of toll collection. It is designed to address issues such as revenue leakage and help in identifying and deterring toll evaders, thereby potentially increasing overall toll revenue for the highway authorities.</span></span></span></p>


The Ministry of Road Transport and Highways in India has introduced a significant change to its toll collection system for highways and expressways, set to take effect from Tuesday, September 10, 2024.

The Ministry of Road Transport and Highways in India has introduced a significant change to its toll collection system for highways and expressways, set to take effect from Tuesday, September 10, 2024. This new regulation, formalised through an amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, allows motorists with vehicles equipped with functional global navigation satellite system (GNSS) devices to travel toll-free for up to 20 kilometers daily. This amendment, officially titled the National Highways Fee (Determination of Rates and Collection) Amendment Rules, 2024, marks a shift in how toll fees are calculated and collected. Under the new system, fees will only be charged for distances exceeding the 20-kilometer daily allowance, based on the actual distance traveled. The government notification provides specific details about the implementation of this new policy. It states that drivers, owners, or individuals in charge of mechanical vehicles, excluding those with National Permits, will be exempt from user fees for journeys up to 20 kilometers in each direction per day when using the same section of a national highway, permanent bridge, bypass, or tunnel. This exemption applies when the toll is collected through the GNSS-based user fee collection system. To encourage the adoption of this new technology, the notification also mentions the possibility of designating exclusive lanes for vehicles equipped with GNSS On-Board Units. As an incentive for compliance, any vehicle entering these lanes without a valid, functional GNSS On-Board Unit will be subject to a penalty fee equivalent to twice the standard user fee applicable at that particular toll plaza. This move towards a GNSS-based toll collection system is part of a broader initiative by the highway ministry. In July, the ministry announced plans to implement this system on select national highways as a pilot project, complementing the existing FASTag system. Union Road Transport and Highways Minister Nitin Gadkari revealed that pilot studies for this GNSS-based user fee collection system had already been conducted on two stretches- the Bengaluru-Mysore section of NH-275 in Karnataka, and the Panipat-Hisar section of NH-709 in Haryana. To further develop this system, the ministry organised an international workshop for stakeholder consultation on June 25, 2024. A global expression of interest (EOI) was issued on June 7, 2024, with a submission deadline of July 22, 2024, to gather input from a wide range of industry players. The National Highways Authority of India (NHAI) intends to implement the GNSS-based electronic toll collection (ETC) system within the framework of the existing FASTag ecosystem. Initially, this will be done using a hybrid model where both the RFID-based ETC and the new GNSS-based ETC systems will operate concurrently. The implementation of GNSS-based electronic toll collection in India is expected to bring several benefits to highway users. These include enabling barrier-free, free-flow tolling, which should result in a more seamless and hassle-free driving experience. Moreover, the system allows for distance-based tolling, meaning users will only pay for the specific stretches of national highway they have actually traveled on. Beyond improving the user experience, the GNSS-based collection system is anticipated to enhance the efficiency of toll collection. It is designed to address issues such as revenue leakage and help in identifying and deterring toll evaders, thereby potentially increasing overall toll revenue for the highway authorities.

Vehicles with global navigation satellite system to travel toll-free up to 20 kms

<p class="MsoNormal"><span lang="EN-GB">The 54th&nbsp;</span>Goods and Services Tax&nbsp;<span lang="EN-GB">Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key&nbsp;agenda items included reducing </span>Goods and Services Tax&nbsp;<span lang="EN-GB">(GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore.<br />
<br />
This meeting was chaired by the Finance Minister of India. State finance ministers and senior officials were also in attendance as detailed in a report by The Economic Times. Further, the meeting concluded at the Sushma Swaraj Bhawan, New Delhi.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Several important decisions were taken up by the panel for consideration including the slashing of GST on health insurance premiums, and a proposal to tax online payments above Rs 2,000 among other issues. The primary goal of the meeting was to ensure that collection efficiency could be improved and the process could be further streamlined for citizens.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Below are some important takeaways</span></b></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB"><o:p></o:p></span></b></p>

<p class="MsoNormal"><strong><span lang="EN-GB">Formation of a new Group of Ministers (GoM) on medical insurance premium</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">The FM announced that the council has decided to form new Group of Ministers (GoM) on GST rate reduction on medical health insurance set up. It will be headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. It will submit its report by October-end. "The GST council which will meet in November will finalize based on this report which will come from the GoM," Sitharaman said.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB"><o:p></o:p></span></b></p>

<p class="MsoNormal"><strong><span lang="EN-GB">GST on Online Gaming and Casinos</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">Nirmala Sitharaman, Finance Minister of India stated that following the announcement of GST on online gaming, there has been a 412 per cent jump in revenue, as per a status report submitted to the respective fitment committee.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">GST on Cancer drugs has been reduced</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">Finance Minister Nirmala Sitharaman stated that the reduction in GST on cancer drugs from 12 per cent to 5 per cent is aimed at further reducing the overall cost of cancer treatment. This step is crucial as it is aimed to help citizens.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">Group of Ministers on Cess</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">During the meeting, it was stated that primarily the total cess collection projected until March 2026 stands at Rs 8.66 lakh crore. Further, after settling the loan payments, a projected surplus of around Rs 40,000 crore is expected.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">Select snacks are set to get cheaper</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">The GST council has decided to slash tax on selected snacks from 18 per cent to 12 per cent. This has been done to benefit the common citizens.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">Govt Universities and research centers are exempted from paying GST</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying Goods and Services Tax (GST) on research funding. The government also clarified that these institutions can receive research funds from both public and private sources without being liable for GST. This is a very important step that is aimed at boosting the research capabilities of the country.</span></p>

<p class="MsoNormal"><span lang="EN-GB">FM confirmed that the position on compensation cess was thoroughly discussed in the meeting. She said that a Group of Ministers (GoM) will be formed to decide on the purpose of the cess and the way forward after March 2026, if the cess has to be collected after the said period as it cannot be called compensation cess. More deliberations will be done to find solutions to this particular issue.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">On Integrated Goods and Services tax</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">In the meeting, key issues related to the Integrated Goods and Services Tax (IGST) balance were also discussed. The GST panel decided to set up a committee headed by the Additional Secretary of Revenue, who will address the negative IGST balance, focusing on retrieving excess IGST disbursed to states.</span></p>

<p class="MsoNormal"><strong><span lang="EN-GB">On rate rationalisation and renting of property</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">The Group of Ministers (GoM) presented their status report on rate rationalisation during the GST Council Meeting. FM Sitharaman stated that the GoM will convene on September 23 to discuss the same. Further, the GST panel has also decided to bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM), in order to prevent revenue leakage.</span></p>

<p class="MsoNormal"><strong>Expert views on the 54th GST council meeting</strong></p>

<p>Shivam Mehta, Executive Partner, Lakshmikumaran and Sridharan, shared his insights on the 54th GST council meeting.</p>

<p>He stated, "The 54th GST council has maintained the pattern of addressing the recent issues and in turn attending to the representations of the industry. The recent exemptions proposed in the context of Government and Private grants received for research and development services seems to tackle the issue of taxability of grants received by research institutions. On the top of that, the decision to regularise the past demands will probably bring an end to the notices issued lately to institutions such as IIT-Delhi."</p>

<p>He further elaborated that, "The exemption given to foreign airlines with respect to import of services, without consideration from a related person or an establishment is a welcome move which will settle the ongoing disputes faced by foreign airlines. The exemption seems to have been carved out, specifically for the airlines industry, keeping in mind the status that airline industry enjoys in other countries. It is a customary practice to reimburse the expenses to the branches or related parties outside India and is not limited to the airline industry. Thus, the clarity on taxability in this domain is still awaited."</p>

<p>"While the insurance sector and countrymen (policy holders) at large, was eagerly waiting for some rate reduction in this council meeting, their hopes are not entirely lost since a Group of Ministers (GOM) has been constituted to look into the rate change. The cutoff date of October end shows the intent of the Government to cater to the demand of GST rate reduction/ exemption for health and life insurance premiums. The Government has also attempted to resolve the persistent request of the industry to provide for the mechanism to deal with ITC mismatch. It is a sound decision in light of the taxpayer’s struggling day and night with the ITC mismatch notices."</p>

<p>"Though the rate rationalization decision seems to have taken back seat as of now, the council has recommended various rate changes including rates on extruded or expanded products (namkeen), transportation of passengers by helicopters and other exemptions pertaining to services, ancillary to electricity distribution etc., which are clearly aimed at benefiting the end consumers."</p>

<p class="MsoNormal"><strong><span lang="EN-GB">Other crucial decisions</span></strong></p>

<p class="MsoNormal"><span lang="EN-GB">The GST panel decided to introduce Business-to-Customer (B2C) GST invoicing. This system for GST invoice management will take effect from October 1. It was also announced to surge GST on car seats from 18 per cent to 28 per cent in the meeting. Further, the panel also clarified that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28 per cent. Further,&nbsp;</span>helicopter services for religious purposes like Kedarnath, and Badrinath have been reduced to 5 per cent&nbsp;from 18 per cent, more clarity and details of this decision are awaited.</p>

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The 54th Goods and Services Tax Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key agenda items included reducing Goods and Services Tax (GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore.

The 54th Goods and Services Tax Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key agenda items included reducing Goods and Services Tax (GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore. This meeting was chaired by the Finance Minister of India. State finance ministers and senior officials were also in attendance as detailed in a report by The Economic Times. Further, the meeting concluded at the Sushma Swaraj Bhawan, New Delhi. Several important decisions were taken up by the panel for consideration including the slashing of GST on health insurance premiums, and a proposal to tax online payments above Rs 2,000 among other issues. The primary goal of the meeting was to ensure that collection efficiency could be improved and the process could be further streamlined for citizens. Below are some important takeaways Formation of a new Group of Ministers (GoM) on medical insurance premium The FM announced that the council has decided to form new Group of Ministers (GoM) on GST rate reduction on medical health insurance set up. It will be headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. It will submit its report by October-end. "The GST council which will meet in November will finalize based on this report which will come from the GoM," Sitharaman said. GST on Online Gaming and Casinos Nirmala Sitharaman, Finance Minister of India stated that following the announcement of GST on online gaming, there has been a 412 per cent jump in revenue, as per a status report submitted to the respective fitment committee. GST on Cancer drugs has been reduced Finance Minister Nirmala Sitharaman stated that the reduction in GST on cancer drugs from 12 per cent to 5 per cent is aimed at further reducing the overall cost of cancer treatment. This step is crucial as it is aimed to help citizens. Group of Ministers on Cess During the meeting, it was stated that primarily the total cess collection projected until March 2026 stands at Rs 8.66 lakh crore. Further, after settling the loan payments, a projected surplus of around Rs 40,000 crore is expected. Select snacks are set to get cheaper The GST council has decided to slash tax on selected snacks from 18 per cent to 12 per cent. This has been done to benefit the common citizens. Govt Universities and research centers are exempted from paying GST Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying Goods and Services Tax (GST) on research funding. The government also clarified that these institutions can receive research funds from both public and private sources without being liable for GST. This is a very important step that is aimed at boosting the research capabilities of the country. FM confirmed that the position on compensation cess was thoroughly discussed in the meeting. She said that a Group of Ministers (GoM) will be formed to decide on the purpose of the cess and the way forward after March 2026, if the cess has to be collected after the said period as it cannot be called compensation cess. More deliberations will be done to find solutions to this particular issue. On Integrated Goods and Services tax In the meeting, key issues related to the Integrated Goods and Services Tax (IGST) balance were also discussed. The GST panel decided to set up a committee headed by the Additional Secretary of Revenue, who will address the negative IGST balance, focusing on retrieving excess IGST disbursed to states. On rate rationalisation and renting of property The Group of Ministers (GoM) presented their status report on rate rationalisation during the GST Council Meeting. FM Sitharaman stated that the GoM will convene on September 23 to discuss the same. Further, the GST panel has also decided to bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM), in order to prevent revenue leakage. Expert views on the 54th GST council meeting Shivam Mehta, Executive Partner, Lakshmikumaran and Sridharan, shared his insights on the 54th GST council meeting. He stated, "The 54th GST council has maintained the pattern of addressing the recent issues and in turn attending to the representations of the industry. The recent exemptions proposed in the context of Government and Private grants received for research and development services seems to tackle the issue of taxability of grants received by research institutions. On the top of that, the decision to regularise the past demands will probably bring an end to the notices issued lately to institutions such as IIT-Delhi." He further elaborated that, "The exemption given to foreign airlines with respect to import of services, without consideration from a related person or an establishment is a welcome move which will settle the ongoing disputes faced by foreign airlines. The exemption seems to have been carved out, specifically for the airlines industry, keeping in mind the status that airline industry enjoys in other countries. It is a customary practice to reimburse the expenses to the branches or related parties outside India and is not limited to the airline industry. Thus, the clarity on taxability in this domain is still awaited." "While the insurance sector and countrymen (policy holders) at large, was eagerly waiting for some rate reduction in this council meeting, their hopes are not entirely lost since a Group of Ministers (GOM) has been constituted to look into the rate change. The cutoff date of October end shows the intent of the Government to cater to the demand of GST rate reduction/ exemption for health and life insurance premiums. The Government has also attempted to resolve the persistent request of the industry to provide for the mechanism to deal with ITC mismatch. It is a sound decision in light of the taxpayer’s struggling day and night with the ITC mismatch notices." "Though the rate rationalization decision seems to have taken back seat as of now, the council has recommended various rate changes including rates on extruded or expanded products (namkeen), transportation of passengers by helicopters and other exemptions pertaining to services, ancillary to electricity distribution etc., which are clearly aimed at benefiting the end consumers." Other crucial decisions The GST panel decided to introduce Business-to-Customer (B2C) GST invoicing. This system for GST invoice management will take effect from October 1. It was also announced to surge GST on car seats from 18 per cent to 28 per cent in the meeting. Further, the panel also clarified that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28 per cent. Further, helicopter services for religious purposes like Kedarnath, and Badrinath have been reduced to 5 per cent from 18 per cent, more clarity and details of this decision are awaited.

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