GST Council Defers Decision On Cutting Tax On Life, Health Insurance

The GST Council meeting, going on in Jaisalmer-Rajasthan, is discussing various issues related to goods and services tax (GST) on Saturday. However, according to reports citing sources, the Council has deferred the decision to cut rates on insurance policies for further examination. The GoM will meet again in January.

According to reports, the Council has recommended 5 percent GST on ready-to-eat popcorn mixed with salt and spices if not pre-packaged, 12 percent on pre-packaged and labelled, and 18 percent on caramel popcorn. All used cars including EVs to attract 18% GST from current 12%; individual sales & purchases to continue at 12%.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman along with state finance ministers, is the apex decision-making body on indirect taxes.

As the GST Council has postponed the tax decision on insurance insurance, Bihar Deputy CM Samrat Chaudhary said, “The report of the council was to be given, and several people had their opinions on it. After another meeting, whether it should be group insurance, individual insurance, senior citizens’ insurance, or insurance for the disabled, a detailed report will be prepared for the next meeting.” GoM has informed the Council about the lack of consensus as of now.

The GST issue related to food delivery platforms has been postponed for further examination. Samrat Chaudhary said the rate rationalisation report could not be discussed in Saturday’s meeting.

All used cars including EVs to attract 18% GST from current 12%; individual sales & purchases to continue at 12%, sources said.