Breaking News: Health and term life insurance will not be cheap, decision postponed till next meeting

New Delhi : Today the 55th meeting of GST Council was organized in Jaisalmer, Rajasthan. In this meeting, a meeting was held with the Finance Ministers of all the states under the chairmanship of Union Finance Minister Nirmala Sitharaman. Some important decisions regarding GST rate were to be taken in this meeting.

In this meeting, a decision was going to be taken to reduce the GST rate on health and term insurance. Currently, news is coming that the proposal to reduce the GST rate on life insurance and health insurance premium has been postponed till the next meeting. The reason behind taking this decision forward is being said to be opposition to it by the states. The GST Council has asked the GOM to further study this decision.

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Who attended this meeting?

The first phase of GST Council meeting starts from 11 am today and continues till quarter to 2 pm. After this the second phase meeting will start at 4.30 pm. In this meeting, Union Minister of State for Finance Pankaj Choudhary along with Union Finance Minister Nirmala Sitharaman, Deputy Chief Ministers of Rajasthan and Telangana, Chief Ministers of Meghalaya and Odisha, Arunachal Pradesh, Bihar, Madhya Pradesh, Goa, Haryana, Jammu and Kashmir, Departments of Economic Affairs and Expenditure were present. Secretary and senior officers of the Finance Ministry have also participated.

GST reduced on packaged water, notebooks

In this meeting, the GST Council has proposed to reduce the 18 percent GST rate on packaged water bottles, note books and bicycles costing less than Rs 10,000 to 5 percent. Online food delivery companies have also been benefited in this meeting. With this decision, ordering food online has become cheaper. It is being told that in this meeting, the decision to change the GST rates on many items has an impact. The GST rate on some items has been reduced based on the recommendations of the Group of Ministers i.e. GOM. However, it is expected that the GST rate on luxury items may be increased.