GST Council: Tax Cuts on Insurance, Hikes on Luxury Goods Under Review

The GST Council is set to discuss tax rate adjustments for various goods and services, including life and health insurance as well as luxury goods. Potential tax hikes on sin goods and rate reductions on essential items are on the agenda, impacting revenue and industry sectors.

In a crucial meeting scheduled for Saturday, the GST Council is expected to make decisions on tax rate modifications across a range of sectors, focusing notably on life and health insurance premiums and high-end luxury items like wrist watches and apparel.

The 55th session, led by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers, will delve into a proposal affecting around 148 items, including potentially incorporating Aviation Turbine Fuel into the GST framework.

The Council is also likely to consider the creation of a new 35 per cent tax bracket specifically for sin goods, as suggested in the GST rate rationalisation report, alongside potential reductions in GST rates for platforms like Swiggy and Zomato.

(With inputs from agencies.)