The GST Council has postponed its decision on reducing tax rates for life and health insurance premiums. With further deliberations planned for January, key proposals include exemptions on term life insurance and premiums for senior citizens.
Goods and Services Tax is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and some goods attract cess on top of the highest 28 per cent
The 54th GST Council meeting introduced several key changes in GST rates, including reductions for cancer drugs and adjustments for various goods. Notable updates include a rate cut for extruded snacks, a new reverse charge mechanism for metal scrap, and an increase in GST rates for car seats.
There has been a widespread demand to remove the 18 per cent GST on health insurance premiums so that the extra burden is not imposed on the insured, thereby increasing the ambit of coverage.
GST council meeting: In another taxpayer-friendly measure, the GST Council has decided to introduce Form GSTR 1A to enable taxpayers to add information they have missed when filing Form GSTR 1.
Union Finance Minister Nirmala Sitharaman has been holding pre-budget consultation meetings with various stakeholders, economists and experts since June 19. The upcoming budget is the first budget of Modi government after winning the third term.
The Union Finance Minister Nirmala Sitharaman will chair the 53rd Goods and Services Tax Council meeting, with finance ministers from states, among others in attendance.
GST Council meeting: Earlier the Ministry of Finance had said that the gross Goods and Services Tax revenue collected in the month of September was Rs 162,712 crore. The monthly revenue is 10 per cent higher than the collection the same month the previous year.
The panel, headed by the Union finance minister and comprising representatives of all states and UTs, also lowered the service tax levied on food and beverages consumed in cinema halls to 5 per cent.
The GST Council, which held its 50th meeting under the chairmanship of Union Finance Minister Nirmala Sitharaman, decided to remove the distinction of game of skill and chance in case of online gaming.
Severa non-BJP ruled states want the compensation regime to be extended by 5 years or the share of states in the GST revenues be increased to 70-80 per cent from the current 50 per cent.
The GoM had suggested withdrawal of GST exemption on a host of services including on hotel accommodation of less than Rs 1,000 per day and replacing it with a 12 per cent tax.
GST Council meet: The council may see a stormy discussion around compensation payout to states with opposition-ruled states aggressively pushing for its continuation beyond the five-year period which ends in June.
This is the second time that the GST Council meeting is being held in Srinagar. Before the launch of the Goods and Services Tax (GST) on July 1, 2017, the 14th meeting of the Council was held on May 18 and 19 in the city. GST rates on 1,211 items were approved at the two-day meeting.
Nirmala Sitharaman will preside over the 45th meeting of the Goods and Services Tax (GST) Council in Lucknow on Friday.
The GST Council on Saturday slashed the tax rate on coronavirus medicines such as Remdesivir and equipment like oxygen concentrators and medical grade oxygen.
Finance Minister Nirmala Sitharaman said the employees could buy items that attract 12 per cent or more goods and services tax (GST). These purchases will have to be made in digital mode from GST-registered outlets.
As the GST compensation cess issue still remains unresolved with around 10 opposition-ruled states and Union Territories not agreeing with the Centre's borrowing proposals, the GST Council, consisting of all state Finance Ministers and headed by the Union Finance Minister, will meet today to discuss and try to reach to a consensus on the matter.
The GST Council meeting on Monday may turn into a stormy affair, with non-BJP ruled states still being in disagreement with the Centre on the compensation issue.
Finance Minister Nirmala Sitharaman, who chaired the 41st GST Council meeting, said the GST shortfall in FY21 was around Rs 2.35 lakh crore. Following a marathon five-hour meeting, Sitharaman said two options of compensating states were discussed.
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