GST Council to Convene 55th Meeting on December 21 in Jaisalmer

The 55th meeting of the Goods and Services Tax (GST) Council is scheduled to take place on December 21 in Jaisalmer. The meeting, chaired by the Finance Minister, is expected to address key issues, including the reduction of GST rates on health and life insurance premiums and the rationalisation of rates on essential goods.

Agenda for the Meeting

Sources reveal that the Council, initially slated to meet in November, postponed its session due to Assembly elections in Maharashtra and Jharkhand and the subsequent Winter Session of Parliament. The upcoming meeting will likely take up two major proposals from the Group of Ministers (GoM) for discussion and decision-making.

One significant proposal involves exempting GST on health and life insurance premiums. Currently taxed at 18%, these premiums may soon enjoy a complete exemption if the Council accepts the GoM’s recommendations. This move, proposed during the GoM’s October 19 meeting, aims to make health and life insurance more affordable for the public.

Additionally, the Council will consider rate rationalisation for several mass-consumed items. Key proposals include lowering GST on packaged water above 20 litres from 18% to 5%, bicycles costing under Rs 10,000 from 12% to 5%, and exercise notebooks from 12% to 5%. These recommendations aim to make essential goods more accessible, especially for middle-income and lower-income households.

Broader Rate Rationalisation Goals

The rate rationalisation plan also proposes increasing taxes on luxury and sin goods while providing relief on essential products. This dual approach seeks to promote equity in the tax structure and ensure affordability for everyday necessities.

The GoM on rate rationalisation, also formed during the October 19 meeting, includes several state finance ministers and other officials. It is tasked with striking a balance between generating revenue and easing the financial burden on the common public.

The previous GST Council meeting, the 54th, was held on September 9. Since then, the Council has been deliberating on several proposals to simplify the tax regime and address concerns raised by various stakeholders. The December 21 meeting is expected to take forward these discussions and implement changes that could significantly impact businesses and consumers alike.

With a focus on reforming the GST framework, the Council’s decisions will likely pave the way for a more balanced and inclusive taxation system, benefiting a wide range of stakeholders.