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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 choice on exemption or decrease GST price 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 mentioned. 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 one in all these two days by which the a lot awaited choice on exemption or decrease GST price on well being and life insurance coverage can be taken.
The Council may take up some rationalisation train and cut back tax charges on a number 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 insurance from GST.
Also, GST on premiums paid by people, apart from senior residents, for medical 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 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 price rationalisation has additionally prompt that the GST Council rejig tax charges on a number of products, together with packaged ingesting water, bicycles, train notebooks, luxurious wrist watches, and footwear. This price rejig is anticipate to lead to income acquire of about Rs 22,000 crore.
The GoM on price 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 might be decreased to five per cent from 12 per cent.
Also, GST on train notebooks might be decreased to five per cent from 12 per cent. The GoM additionally proposed mountain climbing GST on footwear above Rs 15,000/pair from 18 per cent to twenty-eight per cent. It additionally proposed mountain 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 price 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 high of the very best 28 per cent slab. The common GST price has fallen beneath the income impartial price of 15.3 per cent, prompting the necessity to begin discussions on GST price rationalisation.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
News enterprise » tax Nirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22
