ATF Under GST Faces Opposition From States; lnsurance Premium Cut Still In Talks: State FMs

The GST Council, chaired by Union Finance Minster Nirmala Sitharaman and comprising her state counterparts, is expected to deliberate on bringing Aviation Turbine Fuel (ATF) in Goods and Services Tax fold.

Several state finance ministers expect the 55th GST Council meeting to cut tax rate on health and life insurance, besides considering rate rejigs on 148 items.

"Discussion on ATF took place but some states such as West Bengal, and Mizoram objected to the inclusion into GST ambit," Payyavula Keshav, finance minister of Andhra Pradesh said.

West Bengal Finance Minister Chandrima Bhattacharya echoed a similar view and said that many states opposed on ATF under GST and that should not be in the hands of central government.

He said that the group of ministers on insurance will meet in January for further deliberations over tax cut on insurance premium.

Adding to Bhattacharya's view, Uttar Pradesh's Finance Minister Suresh Khanna said that the council seeks inputs of insurance regulator Insurance Regulatory and Development Authority on GST insurance matter.

Uttrakhand Finance Minister Premchand Agrawal said that the matter on insurance is sent to Fitment Panel for further deliberations.

On the same subject, Technical Educational Minister of Himachal Pradesh Rajesh Dharmani said that full GST exemption on life and health insurance premium should be without any cap and that concession should continue for next five year beyond March 26.

"GoM (Group of Ministers) on insurance to consider few more suggestion before forming a view," Bihar Deputy Chief Minister Samrat Choudhary said. He also said that the group of ministers on rate rejig has not been tabled.

Further, Jammu and Kashmir's Chief Minister Omar Abdullah raised concerns over hiking rate on textile including expensive garments such as Pashmina shawls. He said that in reax to speculation around putting expensive readymade garments in 28% bracket.