54th GST Council Meet: Expected Changes and Key Proposals in Today's Meeting:

54th GST Council Meet: Expected Changes and Key Proposals in Today's Meeting The 54th GST Council meeting set for September 9, 2024, is expected to discuss important matters such as the future of the GST compensation cess and prospective changes to the GST rate on insurance premiums. This meeting promises to discuss issues that may affect multiple sectors. Here are some significant expectations.

Continuation of Compensation Cess

The Council is anticipated to clarify the continuation of the GST compensation cess. According to sources, the cess might last until "well into" the financial year 2025-26. There will also be discussions over whether to eventually replace this cess with a tax or a new cess.

Review of GST on Premiums of Insurance

One of the primary topics is the GST rate on life and health insurance premiums. The fitment committee has evaluated the existing 18% GST rate, and the Council will discuss potential reductions. These changes may bring relief to policyholders.

Potential GST Rate Reductions and Exemptions

The Council is likely to consider several relief measures, including potential GST reductions for medicines for cancer, exemptions for electricity meter services, and changes to boost the real estate and metal industries. Furthermore, property buyers and students may benefit from the recommended changes.

Relief for Foreign Airlines

Another major issue is the GST levy on foreign airlines. The Council may consider exempting the import of services by foreign airline head offices that are received without consideration.

Clarification on GST for Payment Aggregators

The Council may also clarify the GST imposition to payment aggregators. At present, transactions under Rs.2,000 are exempt from GST. The fitment committee proposes that payment aggregators pay 18% GST on the income they earn from facilitating these transactions. The proposal is being reviewed and potentially affects payment aggregators such as PineLabs and Razorpay.

Conclusion

The Council is going to take a decision on the matters mentioned above. Hopefully, the decision that will be taken at the meeting will bring relief to various sectors.