Bihar Deputy Chief Minister Samrat Chaudhary, who is the convenor of GST GoM on the rate rationalisation, on Thursday said proposals have come for rate changes in insurance sector, restaurant associations & beverage associations, and online gaming, among others. The comment comes after the group of minister (GoM) on rate rationalisation concludes.
On GST slabs, Chaudhary said not every member was in favour of changing or reducing the number of current slabs under GST.
“Why disturb something which is going on smoothly,” said Krishna Byre Gowda, Minister of Revenue of Karnataka.
On GST rate on insurance, he said, “We have discussed the issue of relaxation in GST rates on insurance; we have asked for more data on it.”
Samrat Chaudhary said no one is in favour of changing any slabs. The rates and slabs will continue as is what discussed today.
“I have placed the request of reducing GST on life and health insurance. I have been told that fitment committee is looking into it,” he said.
The GoM on rate rationalisation, which was formed in October 2021, was tasked to review GST rates on a range of items and slab rates.
It comes ahead of the upcoming 54th GST Council meeting, which is scheduled to take place on September 9. The Council is a constitutional body which is headed by the Union finance minister (currently Nirmala Sitharaman) and comprises representatives of all states and UTs.
Currently, there are five slabs — 0 per cent, 5 per cent, 12 per cent, 18 per cent, and 28 per cent. Apart from this, jewellery attracts a GST of 3 per cent.
In the 54th meeting, the Council is likely to discuss rate rationalisation, compliance measures, ITC reforms, among others.
The previous 53rd meeting was held on June 22, 2024. In the meeting, the GST Council announced various recommendations relating to taxation, ITC claims and demand notices. It recommended a uniform rate of 12% on all milk cans. Waiver of interest on penalties on tax demand notice was also recommended by the Council.
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