The GoM on GST fee rationalisation on October 19 determined to exempt medical insurance premiums as much as Rs 5 lakh protection and time period life insurance coverage premiums. The GoM additionally determined to decrease tax charges on 20-litre packaged consuming water bottles, bicycles and train notebooks to five %, however instructed elevating taxes on high-end wrist watches and footwear, based on a PTI report.
The speed rejig resolution taken by the GoM on GST fee rationalisation beneath Bihar Deputy Chief Minister Samrat Chaudhary would result in a income acquire of Rs 22,000 crore, the report added.
GST on time period life insurance coverage premiums are prone to be exempted for all individuals, together with plans that encompass relations. The GoM determined to exempt GST on premiums paid for medical insurance with protection of Rs 5 lakh for people apart from senior residents. Premiums paid for medical insurance protection of above Rs 5 lakh will proceed to draw 18 % GST.
Nonetheless, there is perhaps no GST on insurance coverage premium paid for senior residents, regardless of the protection quantity. At the moment, 18 % GST is levied on life insurance coverage premiums paid for time period insurance policies and household floater insurance policies.
“Each GoM member needs to offer reduction to folks. Particular focus be on senior residents. We are going to submit a report back to the Council. A closing resolution can be taken by the Council,” Bihar Deputy Chief Minister Samrat Chaudhary, who’s the convenor of the GoMs on insurance coverage and fee rationalisation, mentioned after the conferences.
The GoM proposed lowering GST on packaged consuming water of 20 litres and above to five % from 18 %. If the GoM’s advice is accepted by the GST Council, the GST on bicycles costing lower than Rs 10,000 can be decreased to five % from 12 %. GST on train notebooks can be decreased to five % from 12 %, the GoM proposed.
In the meantime, the GoM instructed mountain climbing GST on footwear above Rs 15,000 a pair and on wrist watches above Rs 25,000 from 18 % to twenty-eight %.
The GoM on fee rationalisation in its earlier assembly had mentioned tax fee tweaks on over 100 gadgets, together with reducing taxes on sure items from 12 to five % to offer reduction to the plenty.
Some gadgets within the 18 % slab like hair dryers, hair curlers, and wonder or make-up preparations that the GoM took up might be again within the 28 % bracket.
The six-member GoM additionally contains Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Well being Companies Minister Gajendra Singh, Karnataka Income Minister Krishna Byre Gowda, and Kerala Finance Minister Okay N Balagopal.
Final month, the GST Council in its assembly had determined to arrange a 13-member GoM to determine on tax on well being and life insurance coverage premiums.
At the moment, GST is a four-tier tax construction with slabs at 5, 12, 18, and 28 %.
Below GST, important gadgets are both exempted or taxed on the lowest slab, whereas luxurious and demerit gadgets entice the very best slab. Luxurious and sin items entice cess on prime of the very best 28 % slab.
(With inputs from PTI)
