- The Indian Ministry of Finance announced recommendations from the GST Council.
- GST will be exempted on individual life and health insurance policies and individual health reinsurance policies.
- The number of GST tiers will be reduced from four to two, introducing a Simple Tax structure with an 18 percent standard rate and a 5 percent merit rate.
- A 40 percent demerit rate will be introduced for specified supplies of goods and services.
- GST rates for coffee, chocolate, and specified packaged foods will be reduced to 5 percent from 12 percent and 18 percent.
- GST rate for specified medicines, renewable energy devices and parts, and hotel accommodation services valued up to 7,500 Indian rupees per unit per day will be reduced to 5 percent from 12 percent.
- The new rates for services and most goods will take effect on September 22.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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