Jaisalmer, Dec 21: The 55th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, began on Saturday in Jaisalmer, with key decisions expected on reducing tax rates for health and life insurance premiums, among other proposals. The Council is also set to deliberate on bringing Aviation Turbine Fuel (ATF) under GST.
A major agenda item is the proposed reduction of GST on health and life insurance premiums. A Group of Ministers (GoM), led by Bihar’s Deputy Chief Minister Samrat Chaudhary, has recommended exempting GST on premiums for term life insurance and health insurance policies purchased by senior citizens. Additionally, health insurance premiums for coverage up to Rs 5 lakh may be exempt from GST, while premiums for policies above Rs 5 lakh would continue to attract 18% GST.
Other significant proposals include cutting taxes on food delivery services like Swiggy and Zomato from 18% to 5%, and raising GST on used small petrol and diesel vehicles, as well as electric vehicles, from 12% to 18%.
The meeting is also expected to extend the deadline for the GoM on GST compensation cess until June 2025. A report on the rationalization of GST rates on 148 items will also be discussed, including hikes on sin goods such as aerated beverages, cigarettes, and tobacco products to 35%.
In addition, the Council is reviewing the GoM’s recommendations on GST rates for apparel, footwear, and bicycles, with proposals to reduce rates for goods like packaged drinking water and exercise notebooks.
The decisions made in this meeting could significantly affect the taxation landscape, especially for common citizens, with many states in favor of lowering taxes on essential goods and services.
