{"id":2751,"date":"2024-11-12T07:57:03","date_gmt":"2024-11-12T07:57:03","guid":{"rendered":"https:\/\/ventil.rs\/blog\/business\/nirmala-sitharaman-to-meet-gst-council-state-fms-for-pre-budget-discussion-on-december-21-22-news18\/"},"modified":"2024-11-12T07:57:03","modified_gmt":"2024-11-12T07:57:03","slug":"nirmala-sitharaman-to-meet-gst-council-state-fms-for-pre-budget-discussion-on-december-21-22-news18","status":"publish","type":"post","link":"https:\/\/ventil.rs\/blog\/business\/nirmala-sitharaman-to-meet-gst-council-state-fms-for-pre-budget-discussion-on-december-21-22-news18\/","title":{"rendered":"Nirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22 – News18"},"content":{"rendered":"


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Last Updated:<\/span>

The meeting assumes significance as states finance ministers would present their recommendations for 2025-26 Budget to be unveiled on February 1, 2025.<\/h2>\n
<\/p>\n

In the 55th GST Council meeting, the much-awaited decision on exemption or lower GST rate on health and life insurance would be taken.<\/p>\n<\/figure>\n

Union Finance Minister Nirmala Sitharaman is likely to meet her state counterparts on December 21-22 for pre-budget consultations and meeting of the GST Council, an official said. The meeting assumes significance as states finance ministers would present their recommendations for 2025-26 Budget to be unveiled on February 1, 2025.<\/p>\n

The 55th GST Council meeting would be held during one of these two days in which the much awaited decision on exemption or lower GST rate on health and life insurance would be taken.<\/p>\n

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The Council may also take up some rationalisation exercise and reduce tax rates on a host of common items from 12 per cent to 5 per cent as per the recommendations of a panel of state ministers.<\/p>\n

The two-day meeting is slated to take place in Rajasthan, either in Jaisalmer or Jodhpur, the official added.<\/p>\n

<\/p>\n

Last month, the group of ministers (GoM) on health and life insurance GST broadly agreed on exempting insurance premiums paid for term life insurance policies, and senior citizens\u2019 health insurance from GST.<\/p>\n

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Also, GST on premiums paid by individuals, other than senior citizens, for health insurance with coverage of up to Rs 5 lakh is proposed to be exempted. However, 18 per cent GST will continue on premiums paid for policies with health insurance cover of over Rs 5 lakh.<\/p>\n

The GST Council in its 54th meeting on September 9 had tasked the GoM to finalise the report on GST levy on insurance by October-end.<\/p>\n

Separately, the GoM on GST rate rationalisation has also suggested that the GST Council rejig tax rates on a host of goods, including packaged drinking water, bicycles, exercise notebooks, luxury wrist watches, and shoes. This rate rejig is expect to result in revenue gain of about Rs 22,000 crore.<\/p>\n

The GoM on rate rationalisation proposed reducing GST on packaged drinking water of 20 litre and above to 5 per cent from 18 per cent. If the GoM\u2019s recommendation is accepted by the GST Council, GST on bicycles costing less than Rs 10,000 will be reduced to 5 per cent from 12 per cent.<\/p>\n

Also, GST on exercise notebooks will be reduced to 5 per cent from 12 per cent. The GoM also proposed hiking GST on shoes above Rs 15,000\/pair from 18 per cent to 28 per cent. It also proposed hiking GST on wrist watches costing above Rs 25,000 from 18 per cent to 28 per cent.<\/p>\n

<\/p>\n

Bihar Deputy Chief Minister Samrat Chaudhary is the convenor of the 13- member GoM on health and life insurance and 6-member GoM on rate rationalisation.<\/p>\n

Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent. Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab. The average GST rate has fallen below the revenue neutral rate of 15.3 per cent, prompting the need to start discussions on GST rate rationalisation.<\/p>\n

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI<\/a>)<\/i><\/p>\n

News<\/a> business<\/a> \u00bb tax<\/a> Nirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22<\/span><\/div>\n<\/div>\n


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Last Updated:November 12, 2024, 13:27 IST The meeting assumes significance as states finance ministers would present their recommendations for 2025-26 Budget to be unveiled on February 1, 2025. In the 55th GST Council meeting, the much-awaited decision on exemption or lower GST rate on health and life insurance would be taken. Union Finance Minister Nirmala…<\/p>\n

Read More “Nirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22 – News18”<\/span> »<\/a><\/p>\n","protected":false},"author":1,"featured_media":2752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.news18.com\/ibnlive\/uploads\/2024\/09\/gst-council-meeting-54th-decisions-2024-09-acc85d8c0fee8dc765ffcd98ecd306c2-16x9.jpeg?impolicy=website&width=1200&height=675","fifu_image_alt":"","footnotes":""},"categories":[3],"tags":[1998,1467,1996,1997],"class_list":["post-2751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gst-council","tag-nirmala-sitharaman","tag-state-finance-ministers","tag-state-fm"],"yoast_head":"\nNirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22 - News18 - Breaking News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ventil.rs\/blog\/business\/nirmala-sitharaman-to-meet-gst-council-state-fms-for-pre-budget-discussion-on-december-21-22-news18\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nirmala Sitharaman to Meet GST Council, State FMs for Pre-Budget Discussion on December 21-22 - News18\" \/>\n<meta property=\"og:description\" content=\"Last Updated:November 12, 2024, 13:27 IST The meeting assumes significance as states finance ministers would present their recommendations for 2025-26 Budget to be unveiled on February 1, 2025. 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