56th Meeting of the GST Council approves dual tax rate structure of 5% and 18%

NEW DELHI : The GST Council on September 3 approved a dual tax rate structure of 5 percent and 18 percent, removing the slabs of 12 percent and 28 percent, highly placed sources told.

The two-day meeting of the top tax panel began on September 3 and will conclude on September 4. The 56th meeting of the Council is chaired by Union Finance Minister Smt. Nirmala Sitharaman and attended by her state counterparts.

The Council is likely to have cleared the reduction of tax rate on footwear and apparel priced up to Rs 2,500 to 5 percent, sources told PTI. As of now, items under these two categories are taxed at 5% for goods priced up to Rs 1,000 and at 12 percent for above Rs 1,000.

The Group of Ministers had already passed the proposal to restructure the GST regime and turn it into a two-rate system of just 5 percent and 18 percent. The new changes are likely to take effect in the next few weeks, just ahead of the beginning of the festive season.

Moreover, the Council is likely to exempt health insurance premiums from GST for senior citizens and slash rates for life savings drugs. The tax panel is also likely to bring health insurance premiums to a lower slab in boost for taxpayers.

Source : PTI