New Delhi: The 55th GST Council meeting is all set to take place on December 21, 2024 in Jaisalmer, Rajasthan. The meeting’s agenda will be discussing the recommendations from key Group of Ministers on change in GST rates on tobacco products, GST on health and life insurance policy and others aspects.
People are expecting exemption or reduction of GST rates on health and life insurance policies which has been point at the focal points of several debates. It may be noted that Union Minister Nitin Gadkari had sent a letter to Finance Minister Nirmala Sitharaman recommending removal of the levy of indirect tax on life insurance premiums paid.
Proposal to impose 35% GST on ‘sin goods’
Group of Ministers is also expected to propose a 35 per cent special rate (including cess) for over 148 items like cigarettes, tobacco, and aerated beverages. The GoM headed by Bihar Deputy Chief Minister Samrat Chaudhary recently recommended a special rate of 35 per cent on sin goods like cigarettes, aerated beverages, tobacco and related products. The GoM also suggested rationalisation of tax rates on apparel.
Meanwhile, Swadeshi Jagran Manch (SJM), has spoked against the proposal to introduce 35 per cent GST on “sin goods” like aerated beverages and tobacco products. It said that the new GST rate would lead to smuggling and loss of revenue for the country.
“Another slab in GST, in the name of luxury and sin goods is primarily a bad idea, which will defeat the very efficiency principle of taxation. Already, a need is being felt among economists that the present number of slabs should be reduced, and the highest 28 per cent slab be abolished,” SJM national co-convenor Ashwani Mahajan said.
Meanwhile, All India Consumer Products Distributors Federation (AICPDF) and Indian Sellers Collective have raised concerns on the recommendations of the GoM on GST rate rationalisation.
The 55th GST Council meeting, scheduled for December 21, 2024, in Jaisalmer, will address crucial recommendations. Key discussions include proposed increases in GST on ‘sin goods’ (tobacco, aerated drinks) to 35%, and the potential for changes to GST rates on health and life insurance. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
