New Delhi: The Goods and Services Tax (GST) Council is expected to meet soon to review the tax regime. This could be the most significant review since the scheme was announced on July 1, 2017, eight years ago.
According to reports, a sweeping reassessment of tax rates on consumer goods, which are currently taxed at the highest slab, and compensation cess might be among the top agenda items of the forthcoming meeting.
Moving pure term insurance policies from the current 18 per cent rate to a zero-tax bracket can also be a top proposal on the council’s table.
The life insurance sector has been demanding a 12 per cent basket, but the Centre seems willing to go further to help middle-class consumers, according to reports.
The council may consider moving the life insurance to a zero-tax bracket from the current rate, the reports stated. Health insurance buyers may anticipate some relief as well.
Scrapping the 12 per cent GST slab entirely could be under discussion. The development could lower taxes on a variety of items.
For over a year, discussions have been going on to simplify the GST, but no progress has been made.
Meanwhile, in June this year, India collected Rs 1.85 lakh crore in Goods and Services Tax (GST), a 6.2 per cent increase over the same month the previous year.
Despite a strong increase to stay above Rs 1.8 lakh crore, collections fell short of the record highs of Rs 2.37 lakh crore in April and Rs 2.01 lakh crore in May.
The government said that the collections have doubled over the last five years to reach a record Rs 22.08 lakh crore in FY25, up from Rs 11.37 lakh crore in FY21, as the GST marked its eighth anniversary of implementation.
Under the GST regime, the number of taxpayers has more than doubled over the past eight years, from 60 lakh to over 1.51 crore.
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