The GST Council, on Saturday December 21, is widely expected to take a decision on trimming tax rates on life and health insurance premiums, leading to cheaper cost of policy buyers. Significantly, the premium on health insurance paid by senior citizens could also be totally exempted from GST. The 55th meeting of the GST Council could also bring ATF under GST, which could have cost implications for the aviation sector.
Among the proposals that could be discussed is a slashing of GST rate on food delivery platforms such as Swiggy and Zomato from the current 18% (with input tax credit). The plea is to cut it to 5% without input tax credit. Saturday’s meeting will be the 55th meeting of the GST Council and will be chaired by Union Finance Minister Nirmala Sitharaman.
What is the agenda for 55th GST Council meeting
Also on the table is a proposal that could raise the price of pre-owned electric vehicles and petrol and diesel vehicles in the market. According to reports, the Fitment Committee of the council that consists of tax officers from the Centre and different states has made a proposal to put used EVS in the 18% bracket – also small petrol and diesel vehicles – from the 12% where it currently is.
However, reports indicate that a comprehensive rate rationalisation which could also encompass higher tax on ‘sin’ goods, might not be taken on Saturday. The Group of Ministers (GoM) proposed rate changes in as many as 148 items, but it could need a building of consensus.
GST revision proposals by GoM
Among the different proposals of the Group of Ministers on GST rate rationalisation are a lot of proposals. These include:
Raise GST on ‘sin’ items such as cigarettes, tobacco and related products, aerated beverages from 28% to 35%, which is the new rate only for ‘sin’ goods.
Ready-made garments priced up to Rs 1,500 would be taxed at 5%. Those in the Rs 1,500-10,000 will be taxed at 18%.
Shoes that cost than Rs 15,000 could be taxed at 28% from present 28%.
Wrist watches above Rs 25,000 should be taxed at 28% 28% (currently 18%).
The meeting is taking place in Jaisalmer and is supposed take several important decisions. Trimming tax on health insurance premiums and bringing ATF under the ambit of GST could be a few of them. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
