The 55th meeting of the GST Council will be held today (Saturday) in Jaisalmer under the chairmanship of Union Finance Minister Nirmala Sitharaman. Preparations in this regard have been completed. Earlier on Friday, Union Minister of Finance and Corporate Affairs Nirmala Sitharaman had said that
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At the meeting to be held in two phases today from 11 am, Union Minister of State for Finance Pankaj Chaudhary along with Chief Ministers of Goa, Haryana, Jammu- and Kashmir, Meghalaya and Odisha, the deputy chief ministers of Arunachal Pradesh, Bihar and Madhya Pradesh. , Rajasthan and Telangana, secretaries of economic affairs and expenditure departments and senior officials of the Ministry of Finance were also present.
The first meeting will take place at 1:45 p.m. After that, the second session will start at 4:30 p.m. This will continue until late in the evening.
It is said that decisions are likely to be taken at the meeting to change GST rates on many products. Based on the recommendations of the Group of Ministers, GST on certain products will be reduced, while the tax on luxury goods is expected to increase.
Making health insurance up to Rs 5 lakh GST-free would likely reduce the 18 per cent GST rates charged on life and health insurance. These rates can be increased from 5 percent to 12 percent. Health insurance up to Rs 5 lakh can be exempt from GST. GST on senior citizens’ health insurance can be completely removed.
GST could end on term insurance. Most states oppose the proposal to make general insurance and health insurance GST-free. Therefore, only the proposal to reduce GST rates is likely to get approval, the proposal to make insurance completely GST free is likely to get stuck due to opposition from states. While GST on term insurance can be completely abolished.
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman chaired the pre-budget consultation meeting with states and Union Territories (including legislative assemblies) for the upcoming Union Budget 2025- 26 in Jaisalmer, Rajasthan.
The GST rate on bottled water, notebooks and bicycles priced below Rs 10,000 is proposed to be reduced from 18% to 5%. Ordering food online can be cheaper. According to sources, in the GST Council meeting, the tax on online food delivery is likely to be reduced from 18% to 5%. This will make ordering food online cheaper. Businesses that deliver food online will also benefit.
It is possible to increase GST on small petrol and diesel cars. It is possible to propose an increase in GST on small petrol and diesel cars (from 12 to 18%) at the GST Council meeting. It is considered safe to increase the GST rate on old and used vehicles to 6%. Currently, there is 12% GST on old used vehicles, which can now be increased to 18%.
State representatives participating in the pre-budget consultation meeting with states and Union Territories for the upcoming Union Budget 2025-26.
Consideration of an increase in taxes on tobacco products, including cigarettes and gutkha The Group of Ministers recommended increasing the tax rate on all types of tobacco products, including gutkha and cigarettes . Tax rates on tobacco products are proposed to be increased from 28 to 35 percent. His proposal will be submitted to the TPS Council. There is a possibility of increase in GST on these products.
Apart from that, branded shoes and watches will be more expensive. At the GST Council meeting, it is considered certain to get approval to increase tax on branded shoes costing more than Rs 15,000 and watches costing more than Rs 25,000. There is a proposal to increase GST on shoes costing more than Rs 15,000 from 18% to 28%, and imposing 28% GST on watches costing more than Rs 25,000.