GoM Proposes GST Rate Changes; On Cycles, 20 L Bottles To Be Brought Down To 5%

ENA Economy 2024-10-21 16:56:12 New Delhi, Oct 21 (KNN) The Group of Ministers (GoM) has proposed a series of Goods and Services Tax (GST) rate adjustments expected to generate an additional Rs 22,000 crore in revenue. The proposals, formulated during a meeting on Saturday, include both increases and reductions in tax rates across various product categories. Led by Bihar Deputy Chief Minister Samrat Chaudhary, the GoM has recommended elevating the GST rate on luxury items. Notably, high-end wristwatches priced above Rs 25,000 and premium footwear exceeding Rs 15,000 may see their tax rates increase from 18 percent to 28 percent. Conversely, the panel has suggested tax reductions on several everyday items. The GoM proposes lowering the GST rate on 20-litre packaged drinking water bottles and bicycles priced below Rs 10,000 from 18 percent and 12 percent, respectively, to 5 percent. Exercise notebooks may also benefit from a tax reduction, with a proposed decrease from 12 percent to 5 percent. The recommendations also include potential tax exemptions for term life insurance premiums and health insurance premiums paid by senior citizens, a move aimed at easing the financial burden on both insurers and policyholders. These proposals follow recent GST Council decisions, headed by Finance Minister Nirmala Sitharaman, which saw rate reductions on cancer drugs and selected snack items in September. The ministerial panel is expected to submit its comprehensive recommendations to the GST Council by October 31. The final decisions on these proposed rate adjustments will be made during the next GST Council meeting, where the suggestions will be reviewed and potentially ratified. (KNN Bureau) 39658 https://knnindia.co.in/news/newsdetails/economy/gom-proposes-gst-rate-changes-on-cycles-20-l-bottles-to-be-brought-down-to-5 2024-10-21 16:56:12 knnindia.co.in GoM Proposes GST Rate Changes; On Cycles, 20 L Bottles To Be Brought Down To 5%