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The assembly assumes significance as states finance ministers would current their suggestions for 2025-26 Budget to be unveiled on February 1, 2025.
In the fifty fifth GST Council assembly, the much-awaited resolution on exemption or decrease GST fee on well being and life insurance coverage can be taken.
Union Finance Minister Nirmala Sitharaman is more likely to meet her state counterparts on December 21-22 for pre-budget consultations and assembly of the GST Council, an official stated. The assembly assumes significance as states finance ministers would current their suggestions for 2025-26 Budget to be unveiled on February 1, 2025.
The fifty fifth GST Council assembly can be held throughout considered one of these two days by which the a lot awaited resolution on exemption or decrease GST fee on well being and life insurance coverage can be taken.
The Council may additionally take up some rationalisation train and scale back tax charges on a bunch of widespread objects from 12 per cent to five per cent as per the suggestions of a panel of state ministers.
The two-day assembly is slated to happen in Rajasthan, both in Jaisalmer or Jodhpur, the official added.
Last month, the group of ministers (GoM) on well being and life insurance coverage GST broadly agreed on exempting insurance coverage premiums paid for time period life insurance coverage insurance policies, and senior residents’ medical health insurance from GST.
Also, GST on premiums paid by people, apart from senior residents, for medical health insurance with protection of as much as Rs 5 lakh is proposed to be exempted. However, 18 per cent GST will proceed on premiums paid for insurance policies with medical health insurance cowl of over Rs 5 lakh.
The GST Council in its 54th assembly on September 9 had tasked the GoM to finalise the report on GST levy on insurance coverage by October-end.
Separately, the GoM on GST fee rationalisation has additionally instructed that the GST Council rejig tax charges on a bunch of products, together with packaged ingesting water, bicycles, train notebooks, luxurious wrist watches, and footwear. This fee rejig is anticipate to end in income achieve of about Rs 22,000 crore.
The GoM on fee rationalisation proposed lowering GST on packaged ingesting water of 20 litre and above to five per cent from 18 per cent. If the GoM’s suggestion is accepted by the GST Council, GST on bicycles costing lower than Rs 10,000 shall be lowered to five per cent from 12 per cent.
Also, GST on train notebooks shall be lowered to five per cent from 12 per cent. The GoM additionally proposed climbing GST on footwear above Rs 15,000/pair from 18 per cent to twenty-eight per cent. It additionally proposed climbing GST on wrist watches costing above Rs 25,000 from 18 per cent to twenty-eight per cent.
Bihar Deputy Chief Minister Samrat Chaudhary is the convenor of the 13- member GoM on well being and life insurance coverage and 6-member GoM on fee rationalisation.
Currently, GST is a four-tier tax construction with slabs at 5, 12, 18, and 28 per cent. Under GST, important objects are both exempted or taxed on the lowest slab, whereas luxurious and demerit objects appeal to the very best slab. Luxury and sin items appeal to cess on prime of the very best 28 per cent slab. The common GST fee has fallen beneath the income impartial fee of 15.3 per cent, prompting the necessity to begin discussions on GST fee rationalisation.
(This story has not been edited by News18 employees and is printed from a syndicated information company feed – PTI)
