GST Council Meeting on September 9: Key Proposals and Expected Changes

The GST Council’s upcoming meeting on September 9, 2024, will address several crucial issues affecting various sectors. Here’s a summary of the key proposals and anticipated changes:

1. Continuation of Compensation Cess
   The Council will focus on the future of the GST compensation cess. Sources suggest extending the cess “well into” the fiscal year 2025-26 (FY26). Additionally, the Council will explore options to replace this cess with a new tax or another cess in the future.
2. Review of GST on Insurance Premiums
   The Council will review the GST rate on life and health insurance premiums, currently set at 18%. The fitment panel has assessed this rate, and the Council will consider potential reductions. This adjustment could offer much-needed relief to policyholders.
3. Relief for Foreign Airlines
   The Council will also examine the GST burden on foreign airlines. It might discuss exemptions for services imported by foreign airlines’ head offices, especially when received without consideration.
4. Potential GST Rate Cuts and Exemptions
   The meeting will likely address several relief measures, including potential reductions in GST for cancer drugs and possible exemptions for electricity meter services. The Council may also consider adjustments to support the real estate and metal industries. These changes could benefit property buyers and students.
5. Clarification on GST for Payment Aggregators
   The GST Council may clarify the GST applicability for payment aggregators. Currently, transactions below ₹2,000 are exempt from GST. However, the fitment committee proposes imposing an 18% GST on income from transactions facilitated by payment aggregators. This proposed change could significantly impact companies like PineLabs and Razorpay.

These developments will have broad implications for businesses and consumers, shaping the GST landscape in the coming months.

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