GST Council: The Group of Ministers (GOM) formed on GST has recommended changes in tax rates at many places. Decisions on all these issues can be taken in the GST Council meeting to be held next month. Apart from abolishing GST on life insurance and medical insurance, tax on bicycles can also be removed. Besides, it has also been recommended to increase the tax on expensive shoes. Apart from this, a decision can also be taken on increasing the sin tax. With its help, the government will earn additional income of Rs 22 thousand crores.
Expensive shoes and watches will be in trouble, Bicycles will become cheaper
According to the Group of Ministers, recommendations have been made to increase and decrease taxes in many places. If all the recommendations are accepted, then GST on wrist watches costing more than Rs 25,000 may increase from 18 per cent to 28 per cent. Apart from this, GST on shoes costing more than Rs 15,000 may also increase from 18 per cent to 28 per cent. According to the proposal, even bicycles cheaper than Rs 10,000 can now come under the ambit of 5 per cent GST instead of 12 per cent. Bottled water bottles larger than 20 liters can also go in 5 percent GST slab instead of 18 percent. GST on exercise books can also be reduced from 12 to 5 percent.
Recommendation to increase sin tax
The Group of Ministers has recommended increasing the Sin Tax. Such items have been asked to be taken in the range of 18 to 28 percent. Sin goods include products like alcohol, tobacco and cigarettes. According to a senior official, the decision was taken to provide GST exemption on premium paid for health insurance with coverage up to Rs 5 lakh for individuals other than senior citizens. For health insurance above this, 18 percent GST will continue to be levied. The final decision in this regard will be taken by the GST Council. In its meeting last month, the GST Council had formed a 13-member group of ministers regarding tax on health and life insurance premiums.
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