The fifty fifth GST Council assembly which is anticipated to resolve on lowering tax price on well being and life insurance coverage, moreover contemplating price rejigs on 148 gadgets started right here on Saturday.
Union Finance Minister Nirmala Sitharaman chairs the fifty fifth assembly of the GST Council, in Jaisalmer(PTI)
The GST Council, chaired by Union Finance Minster Nirmala Sitharaman and comprising her state counterparts, can be anticipated to deliberate on bringing Aviation Turbine Gasoline (ATF) in Items and Companies Tax fold.
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One of many main gadgets on the agenda of the Council is to resolve the GST price on well being and life insurance coverage.
A Group of Ministers (GoM) arrange by the Council below Bihar Deputy Chief Minister Samrat Chaudhary, in its assembly in November had agreed on exempting insurance coverage premiums paid for time period life insurance coverage insurance policies from GST.
Additionally premium paid by senior residents in the direction of medical insurance cowl has been proposed to be exempted from the tax. In addition to, GST on premiums paid by people, apart from senior residents, for medical insurance with protection of as much as ₹5 lakh is proposed to be exempted.
Nevertheless, 18 per cent GST will proceed on premiums paid for insurance policies with medical insurance cowl of over ₹5 lakh.
A last determination of the insurance coverage taxation below GST is probably going on Saturday as most states are in favour of reducing taxes on premium to offer aid to the frequent man.
A number of proposals of Fitment Committee, comprising officers from the Centre and states GST division would come up for overview earlier than the Council. One of many proposals embody chopping taxes on meals supply platforms like Swiggy and Zomato, to five per cent (with out enter tax credit score), from the present 18 per cent (with ITC).
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It’s more likely to have proposed a price hike on sale of used EVs in addition to small petrol and diesel autos to 18 per cent from the present 12 per cent. This hike would convey used and outdated smaller automobiles and EVs at par with outdated bigger autos, in accordance with sources.
Additionally, the GoM on GST compensation cess is more likely to get a six-month extension until June 2025, to submit their report. The compensation cess regime involves an finish in March 2026, and the GST Council has arrange a panel of ministers, below Union Minister of State for Finance Pankaj Chaudhary, to resolve the longer term course of the cess.
One other main merchandise earlier than the Council is the GST price rationalisation panel’s report, which has urged price tweaks in 148 gadgets. The GoM earlier this month determined to submit earlier than the Council their advice to hike tax on sin items, like aerated drinks, cigarettes, tobacco and associated merchandise, to 35 per cent from the current 28 per cent.
The four-tier tax slab of 5, 12, 18 and 28 per cent below GST will proceed and a brand new price of 35 per cent is proposed by the GoM just for sin items. The GoM additionally determined to suggest rationalising tax charges on attire. As per the choice, ready-made clothes costing as much as ₹1,500 would entice 5 per cent GST, these between ₹1,500 to ₹10,000 would entice 18 per cent.
Clothes costing above ₹10,000 would entice 28 per cent tax. At present, clothes costing as much as ₹1,000 entice 5 per cent GST, whereas these above that entice 12 per cent.
The GoM additionally proposed mountaineering GST on sneakers above ₹15,000/pair from 18 per cent to twenty-eight per cent. It additionally proposed mountaineering the GST price on wrist watches above ₹25,000 from 18 per cent to twenty-eight per cent.
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“Some of the low hanging fruits in the 148 items that rate rationalisation panel has suggested may be decided in the meeting. But, no major big ticket rate rationalisation is expected,” an official mentioned.
Requested about his views on price rationalisation and whether or not he’s in favour, Telangana Deputy Chief Minister Mallu Bhatti Vikramarka mentioned: “Taxation system should be more flexible and not be a burden on people. We will present our views.”
The GoM had proposed lowering GST on packaged consuming water of 20 litre and above to five per cent from 18 per cent, and lowering tax price on bicycles costing lower than ₹10,000 to five per cent, from 12 per cent. Additionally, GST on train notebooks can be lowered to five per cent from 12 per cent.