55th GST Council Meeting Scheduled for December 21 in Jaisalmer
Date: November 16, 2024
Category: GST News
Meeting Highlights
- Key Details:
Chairperson: Finance Minister Nirmala Sitharaman
Date & Location: December 21, Jaisalmer
Reason for Delay: Postponed from November due to assembly elections in Maharashtra and Jharkhand, and the Winter Session of Parliament.
- Proposed Agendas:
GST on Health and Life Insurance:
Proposal to exempt GST on health and life insurance premiums, currently taxed at 18%.
Recommendation by a Group of Ministers (GoM) led by Bihar Deputy Chief Minister Samrat Choudhary.
Rate Rationalisation on Mass-Consumed Items:
Packaged water (above 20 litres): Proposed reduction from 18% to 5%.
Bicycles (costing less than ₹10,000): Proposed reduction from 12% to 5%.
Exercise notebooks: Proposed reduction from 12% to 5%.
- Objective of Rate Rationalisation:
Relief for Common Citizens: Reduced GST on essential goods for middle-class and lower-income groups.
Increased Tax on Luxury Items: Proposed higher rates on luxury and sin goods.
- Stakeholder Representation:
GoM on Rate Rationalisation:
Chaired by Bihar Deputy CM Samrat Choudhary.
Members include finance ministers from Kerala, Uttar Pradesh, West Bengal, Karnataka, Rajasthan, and others.
- Previous Meeting:
The 54th GST Council meeting was held on September 9.
Implications
The Council’s decisions, especially on tax exemptions for insurance premiums and rate cuts on essential goods, could provide significant financial relief to citizens. These changes align with efforts to balance affordability and equity within the GST framework.
