GST Council Meeting Soon, Tax Slab Rates And Compensation Cess Key Review Points
New Delhi: The Goods and Services Tax (GST) Council is expected to meet soon to review the tax regime. This could be the most significant review since the scheme was announced on July 1, 2017, eight years ago. According to reports, a sweeping reassessment of tax rates on consumer goods, which are currently taxed at the highest slab, and compensation cess might be among the top agenda items of the forthcoming meeting.
Moving pure term insurance policies from the current 18 per cent rate to a zero-tax bracket can also be a top proposal on the council's table. The life insurance sector has been demanding a 12 per cent basket, but the Centre seems willing to go further to help middle-class consumers, according to reports.
The council may consider moving the life insurance to a zero-tax bracket from the current rate, the reports stated. Health insurance buyers may anticipate some relief as well. Scrapping the 12 per cent GST slab entirely could be under discussion. The development could lower taxes on a variety of items.
