Finance Minister Nirmala Sitharaman The fifty fifth assembly of the GST Council has began on Saturday in Jaisalmer, Rajasthan beneath the chairmanship of. Other than decreasing the tax charge on well being and life insurance coverage premiums, modifications within the tax charges on 148 gadgets will also be thought of within the assembly. Ministers of state governments have additionally joined the GST Council headed by Union Finance Minister Nirmala Sitharaman. The assembly may even talk about bringing Aviation Turbine Gasoline (ATF) beneath the ambit of Items and Providers Tax (GST). The important thing problem on the council’s agenda is fixing the GST charge on well being and life insurance coverage. The Group of Ministers (GoM), constituted by the Council beneath the chairmanship of Bihar Deputy Chief Minister Samrat Choudhary, had in its assembly in November agreed to exempt insurance coverage premiums paid for time period life insurance coverage insurance policies from GST.
Large aid doable on insurance coverage cowl as much as Rs 5 lakh
Other than this, the premium paid for medical insurance cowl by senior residents can be proposed to be exempted from tax. Moreover, it’s proposed to exempt from GST the premium paid for medical insurance with protection as much as Rs 5 lakh by people aside from senior residents. Nonetheless, premiums paid for insurance policies with medical insurance cowl above Rs 5 lakh will proceed to draw 18 per cent GST. The ultimate choice on insurance coverage taxation beneath GST is prone to be taken on Saturday as most states are in favor of decreasing taxes on premiums to supply aid to the frequent man.
Tax could improve on readymade garments
The Group of Ministers additionally proposed rationalizing the tax charge on readymade clothes. He has proposed 5% GST on readymade clothes costing as much as Rs 1,500 whereas 18% GST on clothes costing Rs 1,500 to Rs 10,000. Whereas clothes costing greater than Rs 10,000 will appeal to 28% tax. The Group of Ministers has additionally proposed to extend the GST charge on sneakers priced above Rs 15,000 per pair from 18% to twenty-eight%. Within the final assembly held on October 19, it was additionally proposed to extend the GST charge on wrist watches priced above Rs 25,000 from 18% to twenty-eight%.
