Goods and Services Tax / GST Council meeting is going to be held today, decision will be taken on these issues

GST Council Meeting: To speed up the country's economy in the bone-chilling cold of 7 degrees temperature of Jaisalmer, Rajasthan, the 55th meeting of the GST Council was held today, 21 December. This meeting was held at the Marriott Hotel in Jaisalmer, in which Chief Ministers and Finance Ministers of many states including Finance Minister Nirmala Sitharaman participated.

The main objective of this meeting is to make changes in the tax levied on goods and services falling under the purview of GST. It is estimated that after this meeting, many premium products like cigarettes, tobacco, expensive wrist watches, shoes and clothes may become expensive. At the same time, discussions are also being held to bring the fuel ATF used in the airline industry under the purview of GST.

Big change possible in the insurance sector

Revolutionary decisions can be taken regarding the insurance sector in this meeting of the GST Council.

GST waiver on term life insurance:

It is proposed to waive GST on term life insurance policy with the aim of motivating common citizens to take insurance.

Discount on health insurance premium for senior citizens:

To provide relief to senior citizens, GST waiver is also expected on their health insurance premium.

Discount on health insurance up to Rs 5 lakh:

To make health insurance accessible, GST can be waived on premiums up to Rs 5 lakh. However, this discount will not apply to plans with a cover of more than Rs 5 lakh.

These changes will make insurance plans affordable as well as strengthen the insurance sector in India.

New tax slab for premium and luxury items

The meeting also discussed bringing a new tax slab of 35%, which will be for premium and luxury items. Products that harm health can also be included in this slab.

Tax cut on food delivery platforms

The GST Council is considering reducing the GST rate on food delivery platforms like Swiggy and Zomato from 18% to 5%. This move can bring relief to the customers and boost the food delivery sector.

What will become expensive and what will become cheaper?

The following changes are likely after the decisions of this meeting:

Products that will become expensive:

Cigarettes, tobacco, expensive wristwatches, shoes, and clothes.

Possibility of becoming cheaper:

Food delivery service, basic health and term insurance.

Efforts to make India's tax system simple and inclusive

Through this meeting of the GST Council, not only efforts are being made to implement tax reforms, but steps are also being taken towards making India's tax system more simple, inclusive and affordable. These changes will give new momentum to the country's economy and provide relief to the public.

Conclusion

This important meeting held in Jaisalmer is not only expected to set new dimensions towards changes in GST rates, but it can also prove to be an important milestone in the country's economic development journey.