Lower GST Rate to be Kept for Insurance and Telecom Services

The GST Council is working to ensure that there is a lower tax burden on telecom and financial services so that the common man is not hit hard by GST implementation. This move will ensure that the insurance premiums and phone bills are kept in check. The GST Council has decided to keep a two-slab rate for services – 12% and 18%. However, the Council is mulling to tax financial and telecom services at 5% to ensure that the consumers phone bills and insurance premiums do not suffer a steep rise post GST.

Apart from the agreed four slab rate fixed for goods and services – 5 per cent,12 per cent,18 per cent,28 per cent; an additional cess would be charged on sin and luxury goods such as cigarettes, high end cars, pan masala and soft drinks.

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