The 55th meeting of the GST (Goods and Services Tax) Council will take place on December 21, 2024, in Jaisalmer, Rajasthan, under the leadership of Finance Minister Nirmala Sitharaman. The GST Council plays an important role in implementing GST policies. This Council comprises the representatives from the central government, states, and union territories.
The 55th meeting of the GST Council will be held on 21 December, 2024 at Jaisalmer, Rajasthan
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This Council recommends the central and state governments on GST matters, covering taxable/exempt goods and services, model laws, levy principles, and other key aspects. The council may discuss long-pending issues, mainly focusing on simplifying taxes on life insurance policies.
GST Council Meeting: What Is Expected?
Life And Health Insurance
| Component | Recommendation |
|---|---|
| Premiums for term life insurance policies | GST Exemption |
| Health insurance premiums paid by seniors | GST Exemption |
| Health insurance premiums for policies covering up to ₹5 lakh for individuals other than senior citizens | GST Exemption |
Luxury Or Sin Goods
| Component | Recommendation |
|---|---|
| Wristwatches above Rs 25,000 | GST hike from 18% to 28% |
| Shoes above Rs 15,000 | GST hike from 18% to 28% |
| Sin goods (aerated beverages, cigarettes, tobacco, etc.) | New 35% tax slab (currently 28%) |
Furthermore, media reports suggest that the GoM (Group of Ministers) has recommended 5% GST on ready-made garments up to Rs 1,500, 18% GST on ready-made garments costing between Rs 1,500 and Rs 10,000, and 28% GST on ready-made garments costing above Rs 10,000.
Meanwhile, the GST Council may approve the tax reductions on various items, including packaged drinking water, bicycles costing under Rs 10,000, and exercise notebooks.
Aviation Turbine Fuel
The Council may discuss bringing Aviation Turbine Fuel (ATF) under GST. If it is greenlighted, this would mean a uniform tax rate and allow airlines to claim input tax credits. Notably, the aviation industry has been seeking this change from the long time.
Other Anticipations
| Component | Recommendation |
|---|---|
| 148 items, including used EVs and smaller petrol and diesel vehicles | Rate hike from 12% to 18% |
| GST rates on food delivery platforms such as Swiggy and Zomato | From 18% (with ITC) to 5% (without ITC) |
Proposal to extend the GST compensation cess until June 2025 may also happen in the meeting.
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