GST On Helicopter Services For Religious Travels Cut Down To 5 Per Cent, Says Uttarakhand FM

Speaking to the media, the official informed that earlier the services for religious destinations such as Badrinath, Kedarnath attracted a Goods and Services Tax (GST) of 18 per cent

Notably, Finance Minister Nirmala Sitharaman is presiding over the 54th meeting of the GST Council.

Source : Pexels

Uttarakhand Finance Minister Prem Chand Agarwal on Monday announced a reduction in tax on helicopter services for religious travels. The minister said that the GST Council decided to lower the tax implications for helicopter services for these travels to 5 per cent.

Speaking to the media, the official informed that earlier the services for religious destinations such as Badrinath, Kedarnath attracted a Goods and Services Tax (GST) of 18 per cent. Notably, the 54th meeting of the GST Council is currently underway. Finance Minister Nirmala Sitharaman is presiding over the meeting. 

In addition to this, the government is also set to hold multiple discussions on issues such as cutting down taxes on life and health insurance premiums, and imposing GST on payment aggregators for small digital transactions up to Rs 2,000 via debit and credit cards, reported PTI.

Addressing reporters, Agarwal further noted, “The Council has referred the issues of levy of 18 per cent GST on payment aggregators (PAs), like BillDesk and CCAvenue, for small digital transactions up to Rs 2,000, via debit and credit cards to the fitment committee.”

Notably, payment aggregators are not liable to pay GST on transactions coming up to under Rs 2,000 currently. The Council is also likely to hold a discussion on a fitment committee report on tax on life and health insurance premiums.

In 2023-24, the Centre and states together collected GST worth Rs 8,262.94 crore via health insurance premium, while the GST collected on health reinsurance premium touched Rs 1,484.36 crore.

Earlier discussions in the Parliament between the authorities and members of the Opposition have also revolved around the issue of taxation on insurance premium. The latter demanded that GST should not be levied on health and life insurance premiums. Recently, Union Transport Minister, Nitin Gadkari, also wrote to the Finance Minister seeking a tax exemption in the matter.