Key Highlights and Proposals from the 55th GST Council Meeting
| Summary/Static | Details |
|---|---|
| Why in the news? | 55th GST Council Meeting: Key Highlights and Proposals |
| Luxury Items | Proposed 28% GST on wristwatches above ₹25,000, shoes over ₹15,000, and garments above ₹10,000; lower slabs for affordable items retained. |
| Food Delivery Platforms | GST reduction for Swiggy, Zomato to 5% (from 18%) without ITC, lowering delivery charges and aligning with dining-out taxes. |
| Insurance Products | Proposal to exempt health and life insurance premiums from GST, especially for senior citizens, to make policies affordable. |
| Aviation Turbine Fuel (ATF) | Proposal to bring ATF under GST; allows airlines to claim ITC but faces resistance from states due to revenue concerns. |
| Rate Rationalization | Suggested increases: compact vehicles and pre-owned EVs from 12% to 18%; sin goods like cigarettes and aerated drinks to 35%, with additional cess. |
| Current GST Structure | Four slabs (5%, 12%, 18%, 28%), zero percent, and special rates for precious metals; max combined rate capped at 40%. |
| Challenges | High taxes may increase evasion and smuggling; differentiated slabs create administrative complexities. |