- Disparity in GST Rates: An entrepreneur highlighted the disparity in GST rates, noting the lower 5% GST on fine dining compared to the higher 18% GST on health insurance, a basic necessity.
- Personal Experiences: He shared his surprise at the low 5% GST on a fine dining bill and his frustration at the 18% GST on renewing his parents’ health insurance, which amounted to Rs. 25,000 due to their senior citizen status.
- Impact on Essential Services: He criticized the high GST on essential services and goods, pointing out the 18% GST on health insurance and 12% GST on cancer medicines, questioning the fairness and impact on those who cannot afford these taxes.
- Industry Reactions: An industry expert explained that the lower 5% GST on dining is due to the inability of hotels to claim input tax credit, but the entrepreneur countered that the end consumer bears the GST burden regardless.
- Calls for Reform: The discussion extended to other sectors, with calls for zero tax on education and reconsideration of high GST rates on life and medical insurance, as highlighted by Union Minister Nitin Gadkari’s request to the Finance Minister.
Source A2ztaxcorp
