GST Council meeting started, these decisions including reducing tax on insurance premium are expected – India TV Hindi

Finance Minister Nirmala Sitharaman The 55th meeting of the GST Council has started on Saturday in Jaisalmer, Rajasthan under the chairmanship of. Apart from reducing the tax rate on health and life insurance premiums, changes in the tax rates on 148 items can also be considered in the meeting. Ministers of state governments have also joined the GST Council headed by Union Finance Minister Nirmala Sitharaman. The meeting will also discuss bringing Aviation Turbine Fuel (ATF) under the ambit of Goods and Services Tax (GST). The key issue on the council’s agenda is fixing the GST rate on health and life insurance. The Group of Ministers (GoM), constituted by the Council under the chairmanship of Bihar Deputy Chief Minister Samrat Choudhary, had in its meeting in November agreed to exempt insurance premiums paid for term life insurance policies from GST.

Big relief possible on insurance cover up to Rs 5 lakh

Apart from this, the premium paid for health insurance cover by senior citizens is also proposed to be exempted from tax. Additionally, it is proposed to exempt from GST the premium paid for health insurance with coverage up to Rs five lakh by persons other than senior citizens. However, premiums paid for policies with health insurance cover above Rs 5 lakh will continue to attract 18 per cent GST. The final decision on insurance taxation under GST is likely to be taken on Saturday as most states are in favor of reducing taxes on premiums to provide relief to the common man.

Tax may increase on readymade clothes

The Group of Ministers also proposed rationalizing the tax rate on readymade garments. He has proposed 5% GST on readymade garments costing up to Rs 1,500 while 18% GST on garments costing Rs 1,500 to Rs 10,000. Whereas garments costing more than Rs 10,000 will attract 28% tax. The Group of Ministers has also proposed to increase the GST rate on shoes priced above Rs 15,000 per pair from 18% to 28%. In the last meeting held on October 19, it was also proposed to increase the GST rate on wrist watches priced above Rs 25,000 from 18% to 28%.

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