GST Council Meeting to Address Potential Tax Reductions

The GST Council, headed by Finance Minister Nirmala Sitharaman, will meet on December 21 to discuss potential GST rate changes. Significant agenda points include possible GST exemptions for insurance premiums and rate reductions on several common goods. Adjustments could alter GST on health insurance and goods like bicycles and luxury items.

The GST Council is set to convene on December 21 in Jaisalmer, aiming to make crucial decisions regarding GST exemptions on health and life insurance policies. Chaired by Union Finance Minister Nirmala Sitharaman, this meeting could lower tax rates on many essentials, moving from the 12 percent to the 5 percent slab.

Previous council discussions have focused on exempting certain insurance premiums from GST, notably for term life and senior citizens' health insurance. These exemptions are poised to become official during this meeting, along with the proposal to maintain an 18 percent GST on health policies exceeding Rs 5 lakh in coverage.

Moreover, the GoM on GST rate rationalisation has proposed adjustments on goods like packaged drinking water and bicycles to potentially improve revenue by Rs 22,000 crore. Discussions will also cover increased levies on luxury wristwatches and footwear, signaling a shift in GST strategies.

(With inputs from agencies.)