Suspense Crime Sach Ka Dam
The GST Council on Saturday deferred the decision to reduce the tax rate on premiums of life and health insurance policies. Officials gave this information. In the 55th meeting of the GST Council, it was decided that some more technical aspects need to be removed in this regard. The work was assigned to the GoM for further deliberations in this regard. The council, chaired by Union Finance Minister Nirmala Sitharaman and in the presence of her counterparts from the states, took this decision. Bihar Deputy Chief Minister Samrat Choudhary said that another meeting of the GoM on insurance will be held to decide on taxation on group, individual, senior citizens policies. Choudhary told reporters, some members said that more discussion is needed. We (GoM) will meet again in January.
Now we’ll have to wait till January
The Council has constituted a Group of Ministers (GoM) on Insurance under the chairmanship of Chaudhary, which in its meeting in November agreed to exempt the insurance premium of term life insurance policies from GST. Now one will have to wait till January for relief. Along with this, it has also been proposed to exempt from tax the premium paid by senior citizens for health insurance cover. It is also proposed to exempt from GST the premium paid for health insurance up to Rs 5 lakh for persons other than senior citizens. However, 18 percent GST will continue on the premium paid for policies with health insurance cover of more than Rs 5 lakh.
Changes in tax rates were deferred
The Group of Ministers (GoM) on rationalizing GST rates on Saturday deferred submitting its report to the GST Council. Giving this information, the committee’s convenor and Bihar Deputy Chief Minister Samrat Choudhary said that the report suggested rationalization of rates in 148 items. Choudhary told reporters here, “The report of the Group of Ministers (GoM) on rationalizing the Goods and Services Tax (GST) rates will be submitted to the Council in its next meeting.” The Group of Ministers had reached a broad consensus this month on changing tax rates on about 148 items, including levying a higher tax rate of 35 per cent from the current 28 per cent on items like ‘harmful’ beverages and tobacco products. It was widely expected that the Group of Ministers would submit its report in the GST Council meeting on Saturday. Currently, GST is a four-tier tax structure with slabs of five, 12, 18 and 28 per cent. Goods considered luxurious and evil are taxed at the highest rate of 28 percent, while packaged food items and essential commodities are taxed at the lowest rate of five percent.
No change in tax rate on readymade clothes
The GoM had also decided to propose rationalisation of tax rates on apparel. As per the decision, readymade garments costing up to Rs 1,500 will attract 5 per cent GST, garments between Rs 1,500 and Rs 10,000 will attract 18 per cent GST. Garments costing more than Rs 10,000 will attract 28 per cent tax. Currently, garments costing up to Rs 1,000 attract 5 per cent GST, while those costing above that attract 12 per cent GST. The GoM has also proposed to increase GST from 18 per cent to 28 per cent on shoes costing more than Rs 15,000 per pair. It has also proposed to increase GST from 18 per cent to 28 per cent on wrist watches costing more than Rs 25,000.
The group of ministers had proposed to reduce the GST on packaged drinking water of 20 litres and above from 18 per cent to 5 per cent and the tax rate on bicycles costing less than Rs 10,000 from 12 per cent to 5 per cent. Also, GST on copies was proposed to be reduced from 12 per cent to 5 per cent.
