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PremiumGST Council Meeting Highlights: One of the primary topics on the agenda is the potential reduction of GST rates on life and health insurance premiums. Currently set at 18%, a rate cut could significantly lower insurance costs for policyholders. The Council is expected to review a report from the fitment committee on the GST levied on life, health, and reinsurance premiums, along with its revenue implications.
Updates to this blog has been closed. Keep an eye on Livemint for latest updates.
GST Council Meeting Live: On metal scrap, reverse charge mechanism on supply of metal scrap from unregistered persons to unregistered persons provided that the supplier shall take registration as and when it crosses the threshold limit. In addition, a recipient who is liable to pay under the RCM shall pay tax even if the supplier is under threshold, said Nirmala Sitharaman on Monday.
GST Council Meeting Live: “2 new GoMs (Group of Ministers) have been decided. One is on the medical and health insurance. It will be the rate rationalisation GoM headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. We have told them that they will look into this matter and come up with a report by the end of October 2024. The GST council which will meet in November will finalize based on this report which will come from the GoM," said Nirmala Sitharaman, Union Finance Minister.
GST Council Meeting Live: GST Council reduced the rate on Namkeen to 12% from 18%, said Finance Minister Nirmala Sitharaman
GST Council Meeting Live: Revenues from Online gaming and Casinos have surged 412% to ₹6,909 crore in 6 months, said Finance Minister Nirmala Sitharaman.
GST Council Meeting Live: GST Council agrees to form a GoM on compensation cess, said Finance Minister Nirmala Sitharaman.
GST Council Meeting Live: The Group of Ministers (GOM) presented their details on the rate rationalization and will meet amongst themselves on September 23, a status report was given, said FM Sitharaman.
GST Council Meeting Live: Reduction in GST rate in Cancer drugs 12% to 5% to further reduce the cost of cancer treatment, says FM Sitharaman.
GST Council Meeting Live: The Council has decided on funds given to Central or State-affiliated universities, and income-exempted institutions will be exempted from paying the GST, says FM Sitharaman.
GST Council Meeting Live: “The issue of GST on Health insurance was raised by me. I said that the full exemption should be given...The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced," said Chandrima Bhattacharya, Finance Minister of West Bengal after the GST Council meeting on Monday, reported the news agency ANI.
“They were agreeable to reduce but from 18% to 5%. Now, whether it will be exempted or it will be reduced to 5%," said Bhattacharya.
The Council have decided to form a GoM, which will give its report by the end of October and then it will be decided in the next meeting, according to the finance minister.
GST Council Meeting Live: “The Delhi Government, Punjab Government and Aam Aadmi Party have been continuously raising this issue that the educational institutions which get research grants should not be subjected to GST," said Atishi Marlena, Finance Minister of Delhi after the GST Council meeting reported news agency ANI.
“Imposing GST on it is equal to tax terrorism and we are happy that the Central Government as well as all the state governments agreed to this and it has been decided that now if any educational institution gets any government grant or research grant from any private institution, the GST Council has decided that no GST will be imposed...," said Marlena
"Some opposition states have raised the issue that the currently charged 18% premium on health insurance is too high, so there was a consensus in the GST Council that there should be GST reduction, but now this issue has been sent to GoM. GoM will examine the entire issue...," she said.
GST Council Meeting Live: The GST Council reached a broad consensus on reducing GST on health and life insurance premiums from the current 18 per cent. However, a final decision would be taken in the next meeting, reported the news agency PTI, quoting people aware of the development.
GST Council Meeting Live: “The proposed changes could create a more straightforward and predictable GST framework, enhancing compliance and reducing complexities for businesses," said Sandeep Agrawal, director and founder of Teamlease Regtech.
“Simplifying the rate structure could lower administrative burdens and support industries like insurance by potentially adjusting high tax rates that impact consumer costs. However, maintaining high taxes on sectors like online gaming reflects the government's caution in balancing revenue needs with industry growth," he said.
“The Council's cautious approach indicates a preference for gradual adjustments rather than sweeping changes, with a focus on stabilizing the fiscal landscape while considering future reforms," said Agrawal.
GST Council Meeting Live: Centre and states collected ₹8,262.94 crore through GST on health insurance premiums in 2023-24, reported Moneycontrol on Monday. GST collected on health reinsurance premiums amounted to ₹1,484.36 crore, as per the report.
GST Council Meeting Live: The GST Council has decided to maintain the existing rules for online gaming, casinos, and racecourses, reported CNBC TV-18 on Monday.
GST Council Meeting Live: The proposal to clarify taxation related to oil and gas exploration under farm-in and farm-out contracts has been postponed, reported CNBC TV-18, citing people aware of the development. The issue will be reviewed in the next meeting, with a more thorough examination by the fitment committee, they said in the report.
GST Council Meeting Live: The Goods and Services Tax (GST) Council's decision on applying an 18% GST on transactions under ₹2,000 processed by payment aggregators remains pending, reported CNBC-TV18.
This will impact customers' ability to make small online payments and is to be referred to the GST fitment committee for further review, said Prem Chand Agarwal, the Finance Minister of Uttarakhand, according to the report.
GST Council Meeting Live: There is a 'broad consensus' on reducing insurance premiums; however, the final decision will be taken in the next meeting, reported the news portal Moneycontrol, quoting people aware of the development.
GST Council Meeting Live: GST Council accepts the demand to reduce the GST on heliopter pilgrimage travel to 5% from 18%, said Prem Chand Agarwal, the Finance Minister of Uttarakhand, reported the agency ANI.
GST Council Meeting Live: At the 54th meeting of the Goods and Services Tax (GST) Council on Monday at Sushma Swaraj Bhawan, New Delhi, it is expected that there will potential be a significant relief to individuals and senior citizens by lowering the GST rate on health insurance premiums, reported the news agency ANI quoting people aware of the development.
Currently, both health and life insurance policies attract 18 per cent GST.
The government is currently examining suggestions to alleviate costs associated with power connections and supplementary fees. Should these proposals be implemented, they could have wide-ranging positive impacts across the electricity industry. Power generation firms, distribution networks, and end-users may all stand to gain from such measures.
GST Council's official website - gstcouncil.gov.in - is not working right now. Several people have taken to X to complain about the site crash.
The debate over exempting health insurance premiums from Goods and Services Tax (GST) has gained significant attention in recent weeks. Here's a chronological overview of the key events:
July 31, 2023: The controversy ignited when a letter from Union Minister Nitin Gadkari to Union Finance Minister Nirmala Sitharaman became public. In this correspondence, Gadkari reportedly advocated for the removal of GST on health insurance premiums.
Early August 2023: The issue quickly escalated, reaching the floors of Parliament. During discussions, Finance Minister Sitharaman addressed the matter, stating, "75 percent of the GST collected goes to the states." She further suggested that any consideration of GST exemption on insurance premiums would require input from state governments.
Mid-August 2023: In response to the ongoing debate, the West Bengal government claimed it had previously raised this issue. West Bengal Finance Minister Chandrima Bhattacharya reportedly brought up the topic during a Group of Ministers (GoM) meeting on rate rationalization.
GST Council Meeting Live: The Council, comprising state finance ministers and tax officials, will also evaluate the ongoing crackdown on fake GST registrations. This initiative, launched on August 16, aims to identify and eliminate non-existent GSTINs. Sources report that suspected tax evasion amounting to ₹24,010 crore has been uncovered from previous audits.
