The tax rate may change in the GST Council meeting to be held in December. According to media reports, the Group of Ministers (GoM) constituted to simplify the GST framework has recommended raising the tax rate on tobacco and all tobacco products to 35% from the existing 28%.
Recommendation to increase GST on luxury goods as well
The GoM has recommended rate changes for a total of 148 items including Rs. 1,500 is 5% GST on ready-made garments, while Rs. 1,500 to Rs. 10,000 is 18% GST on ready-made garments. 10,000 to levy GST up to 28%.
The GOM has also recommended an increase in GST on several luxury items including leather bags, cosmetics. It is recommended to make everyday and general consumption items cheaper.
Suggestion to reduce GST to 13% on water bottles
- Bicycle: GST proposed to be reduced from 12% to 5% on bicycles priced above Rs 10,000.
- Water bottle: Proposal to reduce GST on 20 liter water bottles from 18% to 5%.
- Exercise Notebook: Proposal to reduce GST on exercise notebooks for children from 12% to 5%.
- Wrist Watch: Proposal to increase GST from 18% to 28% on wristwatches priced above Rs 25,000.
- Shoes: Rs. Proposal to increase GST from 18% to 28% on shoes costing more than 15,000.
The GST Council will now take the final decision on the recommendations of the Group of Ministers
The GST Council will now take a final decision on the recommendations of the Group of Ministers. Bihar Deputy Chief Minister Samrat Chaudhary is the convener of the 13-member group of ministers. The group of ministers includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana.
The GST Council meeting will be held on December 21
The 55th meeting of the GST Council will be held on December 21, 2024 in Jaisalmer, Rajasthan. The Council, in its last meeting on September 9, asked the GoM to submit a report on the imposition of GST on insurance.
Last month, a GoM meeting was held on the imposition of GST on health and life insurance products. In such a situation, it is believed that a major decision regarding GST on health insurance and term life insurance can also be taken in this meeting.
The government collected ₹1.82 lakh crore from GST in November
The government has collected 1.82 lakh crore rupees from Goods and Services Tax i.e. GST in November 2024. There has been an increase of 8.5% year-on-year. A year ago i.e. in November 2023, the government collected GST of Rs 1.68 lakh crore. Also, in this financial year i.e. 2024-25 so far 14.56 lakh crore rupees have come from GST.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
