New Delhi: The GST Council might bring a cheer for food delivery apps such as Zomato and Swiggy as reports suggest that they might be receiving a cut in payable Goods and Services Tax. Sources reveal that the council might slash the GST on food delivery charges to 5 percent. Currently, the tax slab that it falls under is 18 per cent.
The Council is due to meet in Rajasthan’s Jaisalmer on Saturday, December 21, and the decision could be announced then. The tax cut will be applicable retrospectively from January 1, 2022, according to the report.
The proposed rationalization of GST rates on health and life insurance products will also be on the agenda for the upcoming Council meeting on Saturday in Jaisalmer, sources said. Recently, many leaders from opposition-ruled states have requested Finance Minister Sitharaman to reduce GST on medical insurance and premiums. West Bengal Chief Minister Mamata Banerjee is one of them.
GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a Constitutional body comprising representatives from States/UTs and the Centre.
Meanwhile, Finance minister Nirmala Sitharaman announced an increase in tax on Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) on equity-oriented funds in the Union Budget. Following this, a Systematic Investment Plan (SIP) of ₹50,000 for 60 months in equity funds will have a higher capital gains tax outgo of ₹94,095. This is currently at ₹77,456.
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