- By Shivam Shandilya
- Sat, 19 Oct 2024 07:10 PM (IST)
- Source:JND
GST Rate Reduced: The Group of Ministers (GoM) for GST rate rationalisation has decided to lower down the tax rates on the 20-litre packaged water bottle, bicycles, and exercise notebook from 18 percent to 5 percent now, reports news agency PTI, quoting an official. However, Jagran English could not verify the source independently.
According to the report, term life insurance, and senior citizens' health insurance premiums are likely to be exempted from GST, as most members of a state ministerial panel favoured cutting taxes to benefit the common man. It has also been decided to exempt GST on premiums paid by individuals, other than senior citizens, for health insurance with coverage of up to Rs 5 lakh. However, 18 per cent GST will continue to be levied for health insurance cover of over Rs 5 lakh.
The final decision on GST on health and life insurance premiums besides rate rationalisation is likely to be taken by the GST council, to be chaired by the Union Finance Minister and comprising state counterparts, in its meeting scheduled to take place next month.
"The rate rejig exercise will help the states and Centre to realise revenue gain of Rs 22,000 crore, which will help cover the revenue loss from reduction in GST rates for insurance premiums," the official added.
The GoM has also proposed hiking GST on the shoes above Rs 15,000/pair from 18 per cent to 28 per cent. It also proposed hiking GST on wrist watches above Rs 25,000 from 18 per cent to 28 per cent.
Talking to reporters after the GoM meetings, Bihar Deputy Chief Minister Samrat Chaudhary, who is the convenor of the health and life insurance GoM, said "every GoM member wants to give relief to people. Special focus will be on senior citizens. We will submit a report to the Council. A final decision will be taken by the Council".
According to news agency PTI, Chaudhary, who is the convenor of the GoM on rate rationalisation, said the panel will meet again before submitting its report to the Council. This was the first meeting of the 13-member GoM health and life insurance premiums, which was set up to last month to suggest tax rates.
The panel, which includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana, has been mandated to submit its report to the GST Council by October-end.
(With input from agencies)