Jaisalmer: The 55th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, concluded with significant deliberations. Key discussions included the proposal to reduce GST rates on health and life insurance and the inclusion of Aviation Turbine Fuel (ATF) under the GST regime.
Insurance Tax Cuts Delayed
A proposal to reduce GST on term and health insurance premiums from 18% to 5% was tabled. While the reduction could benefit policyholders and boost insurance penetration, concerns over revenue losses prompted states like Karnataka, West Bengal, and Kerala to oppose the move. The Council has deferred the decision, citing the need for further consultations.
Revised GST on Used Cars
The GST Council approved a revision in tax rates for old and used cars, including electric vehicles, raising the rate from 12% to 18%. This measure aims to standardize tax rates and eliminate ambiguities in vehicle categories.
ATF Inclusion Under GST
The Council also debated bringing Aviation Turbine Fuel (ATF) into the GST framework, a move that could streamline tax structures for the aviation sector. However, no conclusion was reached, and the matter will be discussed further in subsequent meetings.
Future Prospects
While the Council made incremental progress in revising tax structures, major decisions, such as those on insurance tax cuts and ATF inclusion, remain unresolved. Stakeholders are now looking forward to the next Council meet for a consensus on these critical issues.
Meta Description: The GST Council’s 55th meeting deferred decisions on insurance tax cuts and ATF inclusion while revising GST rates for used cars. Key takeaways inside.
Source: Web Team, C6N
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