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In a significant development, the Group of Ministers (GoM) on Saturday agreed upon some Goods and Services Tax (GST) rate revisions that are likely to bring in an additional Rs 22,000 crore revenue. 

The GoM, headed by Bihar Deputy Chief Minister Samrat Chaudhary, suggested raising GST rates on several luxury items, including high-end wristwatches and shoes.

The GoM proposed to increase the GST rate on wristwatches priced above Rs 25,000 from 18 per cent to 28 per cent. Also, shoes costing over Rs 15,000 will also see a tax hike from 18 per cent to 28 per cent, as per the GoM proposal.

The GoM members also decided to lower tax rates on 20-litre packaged drinking water bottles and bicycles to 5 per cent from 18 per cent. GST on exercise notebooks can be reduced to 5 per cent from 12 per cent, the members proposed.

The GST on bicycles priced below Rs 10,000 should be reduced from 12 per cent to 5 per cent.

In September, the GST Council, headed by Finance Minister Nirmala Sitharaman, reduced the GST on cancer drugs and 'namkeens' (selected snacks).

Meanwhile, the GoM has also decided to exempt the GST on term life insurance premiums and premiums paid by senior citizens for health cover. The move would alleviate the tax burden on both insurers and policyholders. The ministerial panel, tasked to rationalise rates, is scheduled to submit its recommendation to the GST Council by October 31. The final decision in this regard will be taken by the GST Council when it meets next.