PTI New Delhi

The GST Council is likely to have approved lowering the GST rate on footwear and apparel priced up to Rs 2,500 to 5 per cent, sources said on Wednesday. Currently, footwear and apparel priced up to Rs 1,000 are taxed at 5 per cent. Beyond the threshold, 12 per cent Goods and Services Tax (GST) is levied.  

The 56th GST Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state counterparts, decided to raise the threshold for footwear and apparel in the 5 per cent slab to Rs 2,500/ piece, from Rs 1,000/piece. GST Council on Wednesday decided to do away with the 12 and 28 per cent slab and move the majority of the items from these slabs to 5 and 18 per cent respectively. 

GST cut on Insurance premiums may lower costs

Health and term insurance premiums may become cheaper if the Goods and Services Tax (GST) Council approves rate cuts at its meeting, which began here on Wednesday. However, according to a report by HSBC Securities and Capital Markets (India), insurance companies are likely to face short-term pressure on profitability due to slower repricing of existing policies. HSBC's analysis suggests that a full exemption could reduce health insurance premiums by around 15 per cent.

GST Council clears dual tax rate structure of 5% and 18%

The GST Council on September 3 approved a dual tax rate structure of 5 per cent and 18 per cent, removing the 12 per cent and 28 per cent slabs, highly placed sources told Moneycontrol.