GST Council Defers Key Tax Decisions in Jaisalmer

The 55th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer, deferred decisions on lowering GST rates for life and health insurance premiums due to unresolved technical issues and divergent state opinions. The Group of Ministers, led by Bihar Deputy Chief Minister Samrat Chaudhary, will reconvene in January to address these concerns, focusing on exemptions for senior citizens and coverage limits. The council approved an increase in GST from 12% to 18% for used cars and EVs while maintaining the current tax rate for popcorn. Proposals to include Aviation Turbine Fuel under GST, beneficial for the aviation sector through uniform taxation and input tax credits, were considered but not finalized. Concerns over revenue losses from insurance tax cuts were raised, necessitating further assessment. The council did not reach a consensus on reducing GST for food delivery platforms like Swiggy and Zomato, which remains under review.