The 55th meeting of the GST Council is today find out what will become cheaper and what will become expensive?
GST Council Meeting: Today, Saturday, December 21, the 55th meeting of the GST Council will take place in Jaisalmer, Rajasthan The meeting will be chaired by Union Finance Minister Nirmala Sitharaman and state finance ministers will also be present. One of the key topics on the agenda is the possibility of providing tax relief on health insurance premiums. There are expectations for tax exemptions or changes in various categories, including luxury items and aviation turbine fuel (ATF). The council is likely to refocus on reducing the tax burden for consumers by lowering prices on widely used items like bicycles and packaged drinking water. Additionally, there may be discussions about increasing prices on expensive items such as wristwatches, shoes, and high-end ready-made clothing.
What to Expect from the 55th GST Council Meeting: Life and Health Insurance:
– The council is expected to consider proposals for reducing GST rates on life and health insurance premiums.
– There may be exemptions on GST for premiums of term life insurance policies.
– Senior citizens could see GST relief on their health insurance premiums.
– For policies covering up to ₹5 lakh for individuals other than senior citizens, there’s a possibility of GST exemption.
– However, premiums for policies covering more than ₹5 lakh may continue to attract 18% GST Luxury Goods: – GST on wristwatches priced over ₹25,000 could increase from 18% to 28%
– Shoes costing more than ₹15,000 might also see a GST hike from 18% to 28%
– For ready-made garments, the GST could be 5% for clothes up to ₹1,500 18% for those between ₹1,500 and ₹10,000, and 28% for items over ₹10,000
– There’s a possibility of increasing the tax slab on cigarettes and tobacco products from 28% to 35%
Potential Tax Reductions: – GST on packaged drinking water (20 liters and above) could be reduced from 18% to 5%. – Bicycles priced under ₹10,000 might see a GST cut from 12% to 5%
– Notebooks could also have their GST reduced from 12% to 5%.
