GST Council Postpones Report Submission, Rate Rejig in Multiple Items

Jaisalmer, Dec 21: The Goods and Services Tax (GST) Council postponed its decision on reducing taxes on health and life insurance, while the group of ministers (GoM) recommendation on rate rejig in 148 items was not tabled before the council.

Despite being headed by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, some members felt that more deliberations were required before a final decision could be arrived at with regard to insurance taxation.

Bihar Deputy Chief Minister Samrat Chaudhary, who heads the panel on GoM on insurance, announced that one more meeting would be held in January to take a call on taxation of group, individual, senior citizen's policies.

The GoM report on rate rationalisation, which recommended tweaks in 148 items, was not tabled before the Council. Chaudhary said they will submit the report in the next meeting of the council.

Besides, the GST Council deliberated on bringing Aviation Turbine Fuel (ATF) under the Goods and Services Tax fold. However, states did not agree to this decision, citing it as part of the crude petroleum diesel basket.

On the other hand, several proposals from the Fitment Committee would come up for review before the council, including cutting taxes on food delivery platforms like Swiggy and Zomato, to 5 per cent from the current 18 per cent.

It is also likely that there will be a proposed rate hike on sale of used EVs as well as small petrol and diesel vehicles. This would bring used and old smaller cars and EVs at par with old larger vehicles.

Additionally, the Group of Ministers (GoM) on GST compensation cess is likely to get a six-month extension till June 2025, to submit their report.