The Group of Ministers (GoM), headed by Bihar Deputy Chief Minister Samrat Choudhary, on Friday asked the Fitment Committee under the Council to examine the tax implication of the proposal, sources told the Economic Times.

Strong opposition to IRDA

The official said the Insurance Regulatory and Development Authority of India (IRDA) has been asked to discuss the pros and cons of the proposal with the industry, which has strongly opposed a blanket exemption, arguing that insurance products would become expensive without input tax credit (ITC) benefits.

Report by the end of this month

The regulator is expected to submit its report by the end of this month, following which the GoM will discuss the matter and submit its recommendations to the GST Council. “IRDAI is working on building a consensus and the GoM will meet again after IRDAI submits its report,” sources said.

What are the objections of the insurance companies

Insurance companies had expressed their objections to IRDAI and Central Board of Indirect Taxes and Customs (CBIC). Insurance companies have expressed their objections by giving a memorandum to IRDAI and Central Board of Indirect Taxes and Customs. The industry has advocated levying 12% GST with ITC for term plans.

“The industry is sceptical about abolition of input tax credit and IRDAI is looking into it,” CBIC chairman Sanjay Agarwal had said in a post-Budget interview to ET earlier this month.

The 13-member group of ministers formed in September 2024 includes Uttar Pradesh Finance Minister Suresh Kumar Khanna , West Bengal Finance Minister Chandrima Bhattacharya, Kerala Finance Minister KN Balagopal, Rajasthan Health Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda and Goa Chief Minister Pramod P Sawant.

Related Articles:-

IMD Alert: There will be rain in these 8 states for three days from today, check details

Indigo Valentine’s Day Sale, Up to 50% discount on fares

Income tax Rule: There will be big changes in income tax from April 1, Check details

The post 5% GST may be levied on term plans along with input tax credit first appeared on Rightsofemployees.com.

A Group of Ministers (GoM) has proposed to impose 38 percent ‘Specific Tax Based Duty’ on Gutkha-Pan. If it is approved, the government will get more revenue from the sale of khutkha and pan masala. This tax will be linked to the retail price of these items. At present, 28 percent GST is levied on these items and compensation charges are levied according to their price.

In fact, the Goods and Services Tax (GST) Council had asked a group of ministers to consider imposing capacity-based taxation on these tax-evading items. After this, the committee of ministers headed by Odisha’s Finance Minister Niranjan Pujari has presented its report and asked to impose 38 per cent tax.

Tax evasion will be curbed

According to media report, this report presented by the committee, if approved, will help in stopping tax evasion on Gutkha-Pan Masala items. Tax evasion can be stopped at the retail trader and supplier level. Along with this, the revenue will also increase.

What the committee said in the report Quoting the report of the Business Standards Committee, it has been said that small and retail traders do not come under the purview of GST registration, due to which tax evasion is increasing in the chain after the supply of such things. . In this case, there is a need to levy specific tax based charges. The GoM has proposed 38 percent special tax on items like pan masala, hookah, chillum, chewing tobacco, which can range from 12 percent to 69 percent of the retail sale price of these items.

Who will have to pay tax?

Suppose Rs 1.46 is paid by the manufacturer on a packet of Pan Masala worth Rs 5, Rs 0.88 is paid by the distributor and retailer, then the total tax will be Rs 2.34. According to the proposal presented there, the tax will increase, but will be within Rs 2.34 only. This means that Rs 2.06 tax will be paid by the manufacturer, Rs 0.28 tax by the distributor and retailer.

The post Eat Gutkha-Paan masala: Big News ! The government issued new guidelines for those who eat Gutkha-Paan masala, see otherwise… first appeared on Rightsofemployees.com.