55th GST Council Meeting Live Updates: Proposals to reduce GST rates on insurance premiums are on the table, while increases for luxury and sin goods are likely. A critical agenda item is the potential inclusion of ATF under GST, which could standardise taxation and allow airlines to claim input tax credit (ITC).
The Council is anticipated to review proposals for reducing GST rates on life and health insurance premiums. Simultaneously, the Group of Ministers (GoM) on GST rate rationalisation has suggested increasing taxes on luxury items and sin goods. A significant topic for discussion is the potential inclusion of aviation turbine fuel (ATF) under the GST framework. If approved, this move would standardize taxation across states and enable airlines to claim input tax credit (ITC) on ATF, addressing a long-standing request from the aviation sector.
Additionally, the Council will examine rate adjustments on 148 items, including used electric vehicles (EVs) and smaller petrol and diesel vehicles, which might see an increase in GST rates from 12% to 18%.
When GST was introduced on July 1, 2017, five major commodities—crude oil, natural gas, petrol, diesel, and ATF—were excluded from its scope, with central and state governments continuing to impose excise duty and VAT. The inclusion of these commodities under GST has been a persistent demand from several industries, particularly aviation.
