55th GST Council Meeting Key Highlights and Proposals
The 55th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, convened ministers from 28 states, two Union Territories, and key stakeholders. The discussions centered on vital tax reforms impacting consumers and businesses across sectors, focusing on luxury items, essential services, and rationalizing the tax structure.
Summary/Static | Details |
Why in the news? | 55th GST Council Meeting: Key Highlights and Proposals |
Luxury Items | Proposed 28% GST on wristwatches above ₹25,000, shoes over ₹15,000, and garments above ₹10,000; lower slabs for affordable items retained. |
Food Delivery Platforms | GST reduction for Swiggy, Zomato to 5% (from 18%) without ITC, lowering delivery charges and aligning with dining-out taxes. |
Insurance Products | Proposal to exempt health and life insurance premiums from GST, especially for senior citizens, to make policies affordable. |
Aviation Turbine Fuel (ATF) | Proposal to bring ATF under GST; allows airlines to claim ITC but faces resistance from states due to revenue concerns. |
Rate Rationalization | Suggested increases: compact vehicles and pre-owned EVs from 12% to 18%; sin goods like cigarettes and aerated drinks to 35%, with additional cess. |
Current GST Structure | Four slabs (5%, 12%, 18%, 28%), zero percent, and special rates for precious metals; max combined rate capped at 40%. |
Challenges | High taxes may increase evasion and smuggling; differentiated slabs create administrative complexities. |
Broader Recommendations | Expand GST base (e.g., include ATF, natural gas), reduce litigation, and enhance enforcement using data analytics. |
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