- By Aditya Pratap Singh
- Mon, 09 Sep 2024 01:09 PM (IST)
- Source:JND
GST Council Meeting Expectations: Union Finance Minister Nirmala Sitharaman will preside over the 54th GST Council meeting in New Delhi Today i.e. on September 9. Common people and businesses are expecting significant relief in taxes on insurance, gaming, and automobiles.
Expectations from GST Council meeting
Compensation Cess
Experts are expecting discussions on whether to continue or discontinue the GST Compensation Cess, which was originally intended to offset states’ revenue shortages after GST implementation but has been extended numerous times.
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Relief on taxes on health and life insurance
Reduction in GST rates on health and life insurance premiums could be a potential agenda, as people are expecting. The GST Council may explore if the present 18% tax rate on health insurance should be lowered or senior citizens, should be exempted from the burden.
Online Gaming
The council may examine a status report on GST revenue from online gaming, comparing figures before and after the implementation of the 28% GST on entry-level bets on 1 October 2023.
The adjustments were designed to address tax evasion by offshore gaming platforms, which are now required to register and pay taxes.
Clarification on taxes on payment gateways
The Council could also clarify the applicability of GST to payment aggregators. At present, transactions below Rs2,000 are exempt from GST. The Fitment Committee has recommended that payment aggregators pay 18% GST on income from facilitating these transactions. The proposal is under review and could affect payment aggregators like PineLabs and RazorPay.
Tax scheme for tobacco products
To tackle tax evasion, the GST Council may discuss means-based tax schemes for items like pan masala and gutkha.
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