GST Council hikes tax on used cars, defers insurance premium decision

Jaisalmer
The GST Council, in its 55th meeting on Saturday, announced a tax hike on the sale of old and used cars, including electric vehicles (EVs), raising the rate from 12% to 18%.

However, a decision on reducing GST for health and life insurance premiums has been postponed. The council was expected to consider rate cuts on insurance premiums and deliberate changes to tax rates for 148 other items.

Bihar Deputy Chief Minister Samrat Chaudhary, who leads the Group of Ministers (GoM) on GST rate rationalization, stated that the proposal to revise GST on insurance premiums would be addressed in the council's next meeting in January.

The GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, was attended by finance ministers from various states.

This development highlights ongoing discussions on tax reforms, with key decisions deferred to the upcoming council meeting.