GST Council’s New Updates about GST Rates
The 54th GST Council meeting, led by Finance Minister Nirmala Sitharaman, is expected to reduce GST rates on insurance premiums and food delivery services. These cuts will lower costs for consumers, enhance financial inclusion, and boost the economy. Affordable insurance and cheaper food delivery could drive economic growth and increased business activity.
- (1888PressRelease) December 23, 2024 - The 54th GST Council meeting, headed by Finance Minister Nirmala Sitharaman, is likely to bring in some major alterations that will help reduce the GST on various essential services. These expected changes are expected to make services like insurance premiums and food orders cheaper for consumers.
Potential Reduction in GST on Insurance Premiums
A potential measure up for debate is the cut in the GST rates of the premiums of the insurance. Today, GST on an insurance service amounts to a rate of 18%, therefore increasing the costs of a premium for an insurance client. The cuts in that rate would see cheap insurance provisions, and it would boost the insurance culture because people would see it as essential to afford. This is in line with the government's objective to enhance financial inclusion and ensure that more citizens have access to insurance protection.
Reducing GST on Food Delivery Services
The Council is also expected to deliberate on reducing GST rates for food delivery services. Presently, food ordered through online platforms is taxed at 18% GST. A proposed reduction to 5% could significantly decrease the overall cost of food orders, providing relief to consumers who frequently use these services. This adjustment would not only benefit consumers but also support the food service industry by potentially increasing order volumes.
Implications for the Common Consumer
When these GST rate reductions take place, consumers can expect significant savings on their expenses. Lower premiums would make insurance policies affordable to more people, and it would be a culture of financial security. Lowered delivery services for food might be able to increase consumer expenditure that would boost the economy. These are some of the moves made by the government as they try to ease the burden of its people and stimulate economic activity.
Wider Economic Effects
There are other wider economic impacts of these changes in GST. Insurance uptake will be high because of higher policies, which will mean increased financial stability for the population. Food service will be on the rise, with increased business and probably increased employment. In general, the effects will be positive on economic growth and development.
Conclusion
The decisions in the 54th GST Council meeting would be strategic steps forward to making necessary services more affordable to the public. The steps to reduce the GST rates of insurance premiums and food delivery services would bring about improvements in financial inclusion and trigger economic activity. These steps will bring concrete benefits to the consumers and be beneficial to the economy at large.
Check here for more such informations https://newstrack.com/business/nirmala-sitharaman-can-take-many-decisions-in-gst-council-meeting-from-insurance-premium-to-food-orders-these-things-can-be-cheaper-485827
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