GST Council's Crucial Rate Decisions & Tax Proposals Await Approval

The GST Council is set to deliberate on reducing tax rates for life and health insurance premiums, bringing Aviation Turbine Fuel under GST, and revising tax rates for various goods. Major decisions include potential tax exemption on certain insurance premiums and rate hikes on sin goods and luxury items.

The GST Council is expected to make key decisions on tax adjustments during its Saturday meeting, primarily focusing on reducing tax rates for life and health insurance premiums. However, significant rate rationalisation, especially for sin goods, may be postponed as consensus is still needed among stakeholders.

During the 55th meeting chaired by Union Finance Minister Nirmala Sitharaman, the council will also discuss the possibility of including Aviation Turbine Fuel (ATF) under the GST framework. Additionally, there's a proposed reduction in GST for food delivery platforms like Swiggy and Zomato from 18 to 5 percent.

The Group of Ministers has suggested rate changes for 148 items, including rate increases on sin goods and luxury items like high-end shoes and wristwatches. While some rate changes might be addressed, comprehensive rate rationalisation is not anticipated yet. Major focus areas include tax exemptions for insurance premiums and potential adjustments within the existing four-tier GST structure.

(With inputs from agencies.)