GST
The Group of Ministers (GoM) on GST rate rationalization on Saturday decided to reduce the tax rate on 20 liter water bottles, bicycles and practice notebooks to five per cent. Apart from this, the GoM suggested increasing taxes on expensive wrist watches and shoes, an official said. The official said that this decision of the GOM constituted on GST rate rationalization headed by Bihar Deputy Chief Minister Samrat Chaudhary will lead to a revenue benefit of Rs 22,000 crore. The GoM suggested reducing GST on water bottles of 20 liters and above from 18 percent to five percent.
GST will increase on expensive shoes and watches
Apart from this, a recommendation was also made to reduce GST on practice notebooks from 12 percent to five percent. Similarly, there is a suggestion to reduce GST on bicycles priced below Rs 10,000 from 12 percent to five percent. The final decision on these recommendations will be taken by the GST Council. The GoM also suggested increasing GST on shoes priced above Rs 15,000 and wrist watches above Rs 25,000 from 18 per cent to 28 per cent. The six-member GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister KN Balagopal.
Insurance premium can be GST free
Premiums paid for life insurance and health insurance by senior citizens can be exempted from tax. A senior official gave this information on Saturday. The meeting also decided to exempt GST on premiums paid for health insurance with coverage up to Rs five lakh for individuals other than senior citizens. The final decision in this regard will be taken by the GST Council.
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