What Key Changes Will the Upcoming GST Council Meeting Review?
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Synopsis
The GST Council is set to meet soon, marking a pivotal moment for the tax regime established on July 1, 2017. Key discussions may include tax slab adjustments and the potential introduction of a zero-tax bracket for specific insurance policies, aiming to benefit middle-class consumers. Stay tuned for the latest updates!
Key Takeaways
- The GST Council is set for a crucial meeting soon.
- A review of tax slabs and compensation cess is on the agenda.
- Pure term insurance policies may transition to a zero-tax bracket.
- Health insurance buyers may also benefit from potential tax relief.
- Discussions on simplifying GST have been ongoing without significant progress.
New Delhi, July 12 (NationPress) The Goods and Services Tax (GST) Council is anticipated to convene shortly for a comprehensive evaluation of the tax framework. This assessment may be the most influential since the inception of the scheme on July 1, 2017, marking eight years.
Reports suggest that an extensive review of tax rates for consumer goods currently subjected to the highest tax slab and compensation cess will be key topics during the upcoming meeting.
A proposal to shift pure term insurance policies from the existing 18 percent tax rate to a zero-tax category could also be a significant item on the council's agenda.
The life insurance sector has been advocating for a 12 percent tax rate, but the government appears open to further adjustments to support middle-class consumers, according to sources.
There are indications that the council may contemplate moving life insurance to a zero-tax bracket from its current rate, as per reports. Health insurance buyers may also look forward to potential relief.
Discussions regarding the complete elimination of the 12 percent GST slab are also expected. This change could result in reduced taxes on various items.
For over a year, talks have been ongoing to simplify the GST, yet no substantial progress has been achieved.
Meanwhile, in June of this year, India generated Rs 1.85 lakh crore in Goods and Services Tax (GST), reflecting a 6.2 percent increase compared to the same month last year.
Although collections exceeded Rs 1.8 lakh crore, they fell short of the record figures of Rs 2.37 lakh crore in April and Rs 2.01 lakh crore in May.
The government has reported that GST collections have doubled over the past five years, reaching a historic Rs 22.08 lakh crore in FY25, a significant rise from Rs 11.37 lakh crore in FY21, as the GST marks its eighth year of implementation.
Under the GST system, the number of taxpayers has surged from 60 lakh to over 1.51 crore in the past eight years.
Point of View
It's vital to recognize the importance of the GST Council's forthcoming meeting. With potential revisions to tax slabs and a focus on assisting middle-class consumers, the outcomes could significantly impact the economic landscape of our nation. The council's decisions will reflect a commitment to adapting the tax framework to current needs.
NationPress
14/07/2025
Frequently Asked Questions
What is the GST Council?
The GST Council is a constitutional body tasked with making recommendations on issues related to Goods and Services Tax.
When was the GST implemented in India?
The Goods and Services Tax was implemented on July 1, 2017.
What changes are expected in the upcoming meeting?
The meeting may review tax slab rates and consider moving certain policies to a zero-tax bracket.
How much did India collect in GST in June 2023?
India collected Rs 1.85 lakh crore in Goods and Services Tax in June 2023.
How has the number of taxpayers changed under GST?
The number of taxpayers has increased from 60 lakh to over 1.51 crore in the past eight years.
