Proposed GST Readjustment: The two ministerial panels set up by the GST Council met on Friday and discussed rationalization of the GST rate and reduction of tax rate on life and health insurance premiums. This was the first meeting of the 13-member GoM, under the leadership of Bihar Deputy Chief Minister Samrat Choudhary, which was set up to suggest taxes on health and life insurance premiums. The panel, which includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana, is mandated to submit its report to the GST Council by the end of October .
In Saturday’s meeting, the GoM on GST rate rationalization decided to reduce tax rates on 20-litre packaged drinking water bottles, bicycles and exercise books to 5 per cent, but suggested increasing taxes on wristwatches and high-end shoes. The rate adjustment decision taken by the Government of Mexico on rationalization of GST rates would lead to a revenue gain of Rs 22,000 crore, officials said.
What gets cheaper?
- Packaged drinking water of 20 liters or more, from 18 to 5 percent.
- Bikes costing less than Rs 10,000 will be reduced from 12 percent to 5 percent.
- 12 to 5 Percent Workbooks.
What becomes more expensive?
- GST on shoes over Rs 15,000 per pair: 18 to 28 per cent.
- GST on wristwatches above Rs 25,000: 18 to 28 percent.
- Some items in the 18 percent group, such as hair dryers, hair curlers, and beauty or makeup preparations taken over by the Government of Mexico, could return to the 28 percent group.
GST on Term Life Insurance Premium
Meanwhile, the goods and services tax on term life insurance premiums and premiums paid by seniors for medical coverage are likely to be exempt from tax. The Government of Mexico to decide on the GST rate for life and health insurance met on Saturday and decided to exempt from GST the premiums paid for health insurance with a cover of Rs 5 lakh for non-senior citizens. The final decision in this regard will be taken by the GST Council. Official premiums paid for health insurance cover above Rs 5 lakh will continue to attract 18 per cent GST. Currently, 18 per cent GST is levied on life insurance premiums paid for term policies and family floater policies.
(With PTI inputs)
READ ALSO: GST fraud case: ACB arrests two more in refund case linked to 500 non-existent companies
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.