GST Council's 55th Meeting: 55th meeting of GST Council will be held in Rajasthan, know what are the updates regarding tax cuts…

GST Council’s 55th Meeting: The 55th meeting of the GST Council is going to be held on 21 December 2024 in Jaisalmer, Rajasthan. This meeting is going to be very important, in which along with Union Finance Minister Nirmala Sitharaman, finance ministers of the states will also participate.

Earlier this meeting was expected to be held in November, but now it has been fixed in December. In the meeting, the Finance Ministers of the states will also present their suggestions related to the budget of the next financial year, which will be presented in the Parliament on 1 February 2025.

Possibility of change in GST on term life insurance policy

Many important decisions can be taken in this meeting, the most important of which is the proposal to give exemption from GST on the premium of term life insurance policy. The Committee of Ministers of the states has submitted its report on this.

In October 2024, the Group of Ministers constituted on health and life insurance had agreed to keep the premium of term life insurance policy out of GST. Apart from this, there may also be a proposal to give GST exemption on health insurance premium to senior citizens.

Discount possible on Health Insurance Premium

There is also a possibility in the meeting that GST exemption can be given on health insurance premium up to Rs 5 lakh. However, GST will continue to be levied on premiums for policies covering more than Rs 5 lakh. This could boost the health and life insurance market, especially for those who have minimum health cover.

Demand for review of GST slab increased

GST is levied in the country under four main slabs (5%, 12%, 18% and 28%). An exemption or lower rate of GST applies to essential goods, while a higher tax rate is imposed on luxury goods.