New Delhi: The 55th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers, is currently underway in Jaisalmer, Rajasthan. The meeting, which brings together the apex body for indirect taxes, is expected to deliberate on several crucial issues, including potential GST rate revisions for various sectors such as life and health insurance, luxury goods, aviation turbine fuel (ATF), and the general tax structure for numerous items. One of the key points of discussion is the proposed reduction of GST rates on life and health insurance premiums.
The Council is expected to review recommendations from the Group of Ministers (GoM) on GST rate rationalisation, which suggest a reduction in taxes to make essential insurance more affordable. Senior citizens and basic health cover policies are particularly in focus, with calls to exempt certain plans from GST altogether. All Eyes On Luxury Good Luxury items are set to be at the center of attention, with a proposal to increase the GST rate on high-end products.
Items like wristwatches priced over Rs 25,000 and shoes costing more than Rs 15,000 per pair may soon attract a 28% GST, up from the current 18%. Additionally, significant adjustments are being considered for the apparel sector. Garments priced under Rs 1,500 will likely remain at the 5% GST rate, but garments priced between Rs 1,500 and Rs 10,000 may see an increase to 18%.
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