Ordering food online from Swiggy and Zomato may become cheaper, electric vehicles may become costlier due to…

During the GST Council meeting, the states may discuss lowering the GST on health insurance premiums. The states will also discuss whether to increase GST on luxurious wrist watches, shoes and clothes. The government is likely to introduce a separate tax slab of 35% on tobacco products. 

Ordering online food through Zomato and Swiggy App may get cheaper. The government may reduce GST on online food while it may increase GST on electric vehicles, leading to a surge in its prices. The 55th meeting of the GST VCouncil will take place on December 21. 

During the GST Council meeting, the states may discuss lowering the GST on health insurance premiums. The states will also discuss whether to increase GST on luxurious wrist watches, shoes and clothes. The government is likely to introduce a separate tax slab of 35% on tobacco products. 

According to an Economic Times report, Union Finance Minister Nirmala Sitharaman will preside over the GST Council meeting, with state finance ministers in attendance. A proposal is on the table to reduce the 18% GST on online food to a 5% slab.

It is expected that GST rates may be changed on 148 articles during the meeting. Along with this, the government may discuss bringing Aviation Turbine Fuel under GST. 

The Fitment Committee has proposed to increase GST on used small petrol and diesel vehicles along with EVs. The committee wants to increase the current GST rate 12% to 18%. After the increase, the prices of used vehicles will be similar to used big vehicles. 

The main agenda of the GST Council meeting is to decide lowering of GST on health and life insurance premiums. In November, Bihar’s deputy CM Samrat Choudhary spearheaded a Group of ministers who all agreed to reduce the GST on health and life insurance premiums. 

Along with this, there is also a proposal to exempt tax on premiums for senior citizens’ health insurance cover.