New Delhi, September 25 (PTI): Congress chief ministers and finance ministers are expected to press for an 18 per cent GST cap at the meeting of the three-day GST Council beginning October 17 and stress that a higher rate would burden the common man. The party leadership has written to the chief ministers and finance ministers, asking them to firmly reiterate the capping of the GST rate at 18 per cent in the upcoming meeting. Congress rationale is that a higher rate will burden the common man and will defeat the very purpose of GST to create a common market and reduce the burden on both -- producer and consumer. The GST Council at its first meeting had decided to keep traders with annual revenue of Rs 20 lakh out of the new national sales tax regime that will subsume all cesses. The exemption limit for north-eastern and hill states has been fixed at Rs 10 lakh. GST: Life insurers want exemption; general differential rates Meanwhile, as the GST rollout plans gathers momentum, life insurers sought exemption from the new taxation regime on premium income, while general insurers have demanded differential rates. Life insurers, who are set to write to the PM seeking exemption from the new tax regime, feel their premium income has remained stagnant since the industry was brought under service tax. Since life insurers are passing on service tax to customers, it has impacted their premium income growth which has been stagnant since then. The present service tax rate is 14.5% and 0.5% ‘Swachh Bharat’ cess. A resolution to this effect was passed during the annual general meeting of the Life Insurance Council held here on September 16. The demand comes as the first 2-day GST Council meeting that ended on Friday in the National Capital, decided to meet on October 17-19 to finalise the maximum and minimum rates in the single national taxation regime.
