The GST Council is preparing to give great relief to taxpayers. It is reported that the council may approve cuts in GST rates on insurance policies, which will make it cheaper to take health and life insurance policy. According to the news of Moneycontrol, some life saving drugs can also be given tax relief. Let us tell you, the 56th meeting of GST Council has started in Delhi on 3 September. It will also run on 4 September. It is expected that by the third week of September, notifications of significant rates will be released.
MSME and Startups also prepare for relief
In addition to today’s meeting, efforts are being made to benefit MSME and Startups. The Council has also approved several important measures to reduce the burden of compliance on businesses. According to the information, GST registration of MSME and Startups will now be possible in just 3 days. It takes 30 days now. This causes problems to small traders. In addition, the GST Council has agreed to dispose of refunds stuck under the inverted fee structure for textile, pharma, chemicals, fertilizers and other industries in seven days.
Will tax increase on luxury electric vehicles?
The country’s leading electric vehicle manufacturers- Tata Motors, Mahindra & Mahindra, JSW MG Motor, BYD, Mercedes-Benz, BMW, and recently entered India, may soon get a major setback. It is reported that in the upcoming meeting of the GST Council, the proposal to increase the GST rate on luxury EV (electric vehicles) worth more than ₹ 20 lakh will be kept from 5% to 18%.
Demand raised to make up for revenue loss
According to the news, eight states-Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, West Bengal and Karnataka have requested the Central Government that if a proposal to rationalize the Goods and Services Tax (GST) structure is passed in the meeting of the GST Council on 3 and 4 September, then the revenue loss should be made for them.
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