The 55th meeting of the GST Council has started in Jaisalmer, Rajasthan. This meeting is being held under the chairmanship of Union Finance Minister Nirmala Sitharaman. This committee consisting of Nirmala Sitharaman and state counterparts can decide to reduce tax rates on life and health insurance premiums. However, the decision on large-scale rationalization of rates, which includes increasing the tax rate of harmful goods, can be postponed.
The Group of Ministers constituted on rationalization of GST rates had proposed changes in the rates of 148 items in its recommendations. However, sources are saying that there is a need to build consensus on some tax changes suggested by the panel and some more time may be needed for this.
There will be a discussion on bringing aircraft fuel under the purview of the GST.
In the 55th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman, there is also a possibility of discussion on bringing Aviation Turbine Fuel (ATF), a major component of the operating cost of the airline industry, under the purview of Goods and Services Tax (GST).
The GST rate on food delivery platforms such as Swiggy and Zomato is proposed to be reduced from the current 18 percent (with ITC) to 5 percent (without input tax credit). However, the Fitment Committee (which comprises tax officials from the Centre and states) has proposed to increase the tax rate on the sale of used electric vehicles as well as small petrol and diesel vehicles from the current 12 percent to 18 percent. According to sources, this hike will bring taxes on old small cars and electric vehicles at par with old large vehicles.
Also, the Group of Ministers (GoM) on GST compensation cess is likely to get a six-month extension till June 2025 to submit its report. The compensation cess regime will end in March 2026. The GST Council has constituted a panel of ministers led by Union Minister of State for Finance Pankaj Choudhary to decide the future of the cess.
A big decision can also be taken on compensation cess.
In the GST system, a compensation cess is levied at various rates in addition to a 28 percent tax on items related to luxury, sin, and demerit. The income from the cess, which was originally planned for five years or till June 2022 after the implementation of GST, was used to compensate for the revenue loss suffered by the states after the implementation of GST.
A major issue on the council's agenda is to fix the GST rate on health and life insurance. The group of ministers constituted by the council, headed by Bihar Deputy Chief Minister Samrat Chaudhary, had agreed to exempt the insurance premium paid for term life insurance policies from GST in its meeting in November.
Apart from this, it has also been proposed to exempt the premium paid on health insurance on behalf of senior citizens from tax. Apart from this, it is proposed to exempt GST on the premium paid for health insurance up to Rs 5 lakh by persons other than senior citizens.
The final decision on insurance taxation under GST is likely to be taken on Saturday as most states are in favor of reducing taxes on premiums. Another key item before the Council is the report of the GST rate rationalization panel, which has suggested rate changes in 148 items.
GST rate on hazardous goods suggested to be increased from 28% to 35%
The Group of Ministers on rationalization of GST rates had decided to submit its recommendation before the Council earlier this month, suggesting to increase the tax on hazardous goods such as aerated beverages, cigarettes, tobacco, and related products from the current 28% to 35%.
The four-tier tax rates of 5, 12, 18, and 28% will continue under GST and the new rate of 35% has been proposed by the Group of Ministers only for hazardous goods. The Group of Ministers on rate rationalization, headed by the Deputy Chief Minister of Bihar, also proposed to rationalize tax rates on apparel. According to the decision, 5 percent GST will be levied on readymade clothes costing up to Rs 1,500, while 18 percent GST will be levied on clothes costing from Rs 1,500 to Rs 10,000.
28 percent GST may have to be paid on clothes costing more than Rs 10,000
28 percent tax will be levied on clothes costing more than Rs 10,000. Currently, 5 percent GST is levied on clothes costing up to Rs 1,000, while 12 percent GST is levied on clothes costing more than this. The group of ministers also proposed to increase the GST rate from 18 percent to 28 percent on shoes costing more than Rs 15,000 per pair.
Apart from this, it was proposed to increase the GST rate from 18 percent to 28 percent on wristwatches costing more than Rs 25,000. "Out of the 148 items suggested by the panel for rationalizing rates, some of them may be decided in tomorrow's meeting," he said.
PM Modi will be visiting Gujarat on September 20th. This will be a one-day visit. On Saturday, PM
PM Modi wished the countrymen a Happy New Year, and wrote an emotional message in a poetic style
The New Year 2025 has started with great enthusiasm in the country and across the world. After we
Humor and jokes are good only till someone is not hurt. Insulting someone is not a joke. What Kap
For the last few days, Bollywood actress Preity Zinta has been active on social media. In a tweet
'Zubeen Garg was poisoned,' reveals singer's friend; alleges conspiracy
There has been a new twist in the case of the death of renowned singer and icon Zubeen Garg. His
On his birthday, Samay Raina took a big step and apologized on social media for his actions.
Stand-up comedian Samay Raina is celebrating his birthday today. On this occasion, he apologized
The Maha Kumbh (Mahakumbh 2025) started with the holy dip of Paush Purnima on Monday at the Trive
Recently, America has taken action against illegal immigrants. In this episode, America sent back
Visa can be cancelled if you commit a crime in America. The US Embassy in India has warned that v
A trade war is going on between America and China, but along with this, a small trade war is also
