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55th GST Council Meeting: Today the 55th meeting of the GST Council is being held in Jaisalmer, Rajasthan. Finance Minister Nirmala Sitharaman is presiding over it. During this period, many important decisions regarding GST rates can be taken. It is believed that in the meeting, GST on many other categories of goods including life and health insurance, luxury items, aviation turbine fuel (ATF) can be reduced or important changes can be made in them. GST Council is the supreme body that decides on Goods and Services Tax.
Today decisions can be taken on these issues-
- The proposal to reduce GST rates on premiums charged on life and health insurance is likely to be discussed in the meeting.
- Possibility of getting exemption from GST on premium of term life insurance policies.
- Exemption from GST on health insurance premiums paid by senior citizens.
- Exemption from GST on premiums for health insurance policies with coverage up to Rs 5 lakh for persons other than senior citizens.
- Maintaining 18 percent GST rate on premium for policies covering more than Rs 5 lakh.
The price of these luxury items may increase
In today’s meeting, decisions will also be taken regarding GST rates on many luxury items.
- GST on hand watches costing more than Rs 25,000 can be increased from 18 per cent to 28 per cent.
- GST on footwear costing more than Rs 15,000 per pair may be increased from 18 per cent to 28 per cent.
- If we talk about readymade clothes, then 5% GST is likely to be imposed on clothes costing up to Rs 1500, 18% on clothes costing between Rs 1500 to Rs 10,000 and 28% on clothes costing more than Rs 10,000.
- There is a possibility of increasing GST on aerated drinks including cigarettes and tobacco from 28 percent to 35 percent.
The price of these things can be reduced
- There is also a possibility of reducing GST on some goods to provide relief to consumers.
- Possibility of reducing GST on packaged drinking water (20 liters or more) from 18 percent to 5 percent.
- GST on bicycles priced below Rs 10,000 may be reduced from 12 per cent to 5 per cent.
- GST on notebooks will be reduced from 12 to 5 percent.
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