States ask for higher borrowing ceiling, interest-free loans

THE GST Council in its 55th meeting on Saturday is likely to announce changes in tax rates on several goods and services.

- DIPAK MONDAL @ Jaisalmer

As per sources, the fitment panel of the Council has decided to levy 18% GST on all kinds of used cars. Currently, used petrol cars up to 1200 cc and diesel cars up to 1500 cc are taxed at 12%, those above these specifications are taxed at 18%.

The Council is likely to agree with the fitment panel's recommendation and raise GST rate to 18% uniformly to all used cars including the EVs. The sources said the GoM on insurance would submit its report to the Council on Saturday, but it is not clear if any decision on the same would be taken during the meeting in Jaisalmer. The GoM has recommended complete waiver of GST on insurance premium for health insurance with ₹5 lakh cover.

The Council may give its nod to exempt gene therapy from GST. It may extend concessional 5% rate on inputs of food preparations that are supplied for free distribution to economically weaker sections under government schemes.