Last Updated:
The two-day meeting of the apex tax body began on September 3 and will conclude on September 4
Union Finance Minister Nirmala Sitharaman chairs the 56th meeting of the GST Council on Wednesday, in New Delhi. (Photo Credit: X handle/ Finance Ministry)
The GST Council on September 3 approved a dual tax rate structure of 5 per cent and 18 per cent, removing the 12 per cent and 28 per cent slabs, highly placed sources told Moneycontrol.
The two-day meeting of the apex tax body began on September 3 and will conclude on September 4. It is being chaired by Union Finance Minister Nirmala Sitharaman.
According to a PTI report, the Council has also cleared the reduction of tax rate on footwear and apparel priced up to Rs 2,500 to 5 per cent.
The Group of Ministers had already endorsed the proposal to streamline the GST regime into a two-rate system of just 5 per cent and 18 per cent. Further, it is expected that the new changes will take effect within the next few weeks, ahead of the festive season.
In addition, the Council is likely to exempt health insurance premiums for senior citizens from GST and reduce rates on life-saving drugs. Sources further told Moneycontrol that health insurance premiums may also be shifted to a lower slab to provide relief to taxpayers.
Micro, Small & Medium Enterprises (MSMEs) are also expected to benefit, with the government moving to ensure registrations can be completed within three days, down from the current multi-week process, according to a Moneycontrol report.
However, opposition-ruled states have pressed the Centre for compensation to cover revenue losses. Eight states—Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, West Bengal, and Karnataka—have demanded either compensation or detailed estimates of likely revenue erosion.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
Read More
