GST Hike: Cheap Shirts, Pants, and Kurtas Will Also Be Taxed, Cigarettes Will Empty Your Pockets!

The central government is set to make a major decision by the end of the year. In this meeting, several product prices could either rise or fall.

Tomorrow, Saturday, the 55th GST Council meeting will be held in Jaisalmer, Rajasthan. In this meeting, there are likely to be changes in the GST on health insurance, luxury goods, and aviation fuel.

What Changes Could Happen?

Health Insurance: GST on life and health insurance may be reduced. A discount may be given on the GST of term life insurance premiums. There is also a recommendation to waive GST on premiums for senior citizens.

It has been recommended to give a discount on GST for health insurance premiums up to 5 lakh rupees. For health insurance premiums above 5 lakh rupees, an 18% GST will continue to apply.

Luxury Goods: For expensive branded items, such as watches above 25,000 rupees and shoes above 15,000 rupees, the GST could be increased from 18% to 28%.

For ready-made garments priced above 1,500 rupees, a 5% GST could apply; for clothes priced between 1,500 to 10,000 rupees, an 18% GST, and for garments priced above 10,000 rupees, a 28% GST may be imposed.

Tobacco Products: The recommendation is to move cigarettes, tobacco products, and cold drinks from the 28% tax slab to the 35% tax slab.

Which Prices Could Drop?

Bottled Water: The GST on packaged drinking water of 20 liters or more could be reduced from 18% to 5%.

Bicycles: The GST on bicycles costing less than 10,000 rupees could be reduced from 12% to 5%.