GST Council meet: Ordering from Swiggy, Zomato May Get Cheaper


The GST Council is expected to discuss lowering tax rates on life and health insurance premiums during its meeting on Saturday. Simultaneously, it may consider increasing taxes on luxury wristwatches, footwear, and apparel, along with introducing a distinct 35% tax slab for sin goods.

The 55th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state counterparts, is likely to discuss rate rejig in about 148 items, besides, it will also deliberate on bringing Aviation Turbine Fuel (ATF), a major component for airline industry's operation cost, in the Goods and Services Tax (GST) fold.


GST rate cut for food delivery platforms
It is proposed to reduce the GST rate for food delivery platforms like Swiggy and Zomato to 5% (without input tax credit) from the existing 18% (with ITC).


EVs in focus:
However, the Fitment Committee (comprising tax officers from the Centre and states) is likely to have proposed a rate hike to 18 per cent on sale of used EVs as well as small petrol and diesel vehicles to 18 per cent from the current 12 per cent. This hike would bring used and old smaller cars and EVs at par with old larger vehicles, according to PTI sources.


Compensation cess:
The Group of Ministers (GoM) on GST compensation cess is expected to receive a six-month extension until June 2025 to finalize their report. With the compensation cess regime concluding in March 2026, the GST Council has formed a ministerial panel, led by Union Minister of State for Finance Pankaj Chaudhary, to determine the cess's future trajectory.

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