Breaking News: Exciting GST Rejig Unveils Tax Exemptions on Insurance with Surprising Changes on Essentials and Luxuries!
The Group of Ministers (GoM) on GST rate rationalization has recommended exempting GST on health insurance premiums with coverage up to Rs 5 lakh for individuals, excluding senior citizens. Premiums for coverage above Rs 5 lakh will continue to incur an 18% GST. The proposal suggests that senior citizens might receive a full exemption regardless of coverage limits. These changes await final approval from the GST Council.
The GoM also proposed reducing GST to 5% for 20-litre packaged drinking water, bicycles under Rs 10,000, and exercise notebooks. Conversely, the GST on shoes priced above Rs 15,000 and wristwatches above Rs 25,000 is set to increase from 18% to 28%. These adjustments are expected to yield a revenue surplus of Rs 22,000 crore.
Chaired by Bihar Deputy Chief Minister Samrat Chaudhary, the GoM emphasizes providing relief, particularly to senior citizens. The 13-member panel, which includes ministers from various states, will submit its recommendations to the GST Council by October 2024. The existing GST slabs include 0%, 5%, 12%, 18%, and 28%.
Mohammad Haris, Deputy News Editor (Business) at news18.com, reports these potential changes, highlighting their impact on markets, the economy, and various consumer goods.
Original Story https://www.news18.com/business/tax/gst-rejig-life-health-insurance-premiums-to-be-exempt-higher-28-rate-on-shoes-watches-gom-proposes-changes-9091775.html
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