54th GST Council meet: New GoM to look into rate on life, health insurance

GST Council headed by Union Finance Minister Nirmala Sitharaman on Monday determined to arrange a Group of Ministers (GoM) on lowering tax price on life and medical insurance and minimize GST on most cancers medicine and namkeens.

Briefing reporters on the result of the 54th GST Council assembly, Sitharaman mentioned it has determined to have a Group of Ministers (GoM) to look into the GST price on life and medical insurance.

The GoM shall be headed by Bihar Deputy Chief Minister Samrat Choudhary, who’s at the moment heading the panel on GST price rationalisation.

Sitharaman mentioned that new members could be becoming a member of the GoM to look into GST on medical insurance.

The GoM shall be submitting its report by October finish, she mentioned.

The difficulty of taxation of insurance coverage premiums had figured in Parliament discussions with Opposition members demanding that well being and life insurance coverage premiums be exempt from the GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the difficulty.

Sitharaman in her reply to a dialogue on the Finance Invoice had mentioned that 75 per cent of the GST collected goes to states and the Opposition members ought to ask their state finance ministers to deliver the proposal on the GST Council.

The GST Council in its assembly on Monday additionally determined to chop tax charges on most cancers medicine to five per cent from 12 per cent and namkeens from 18 per cent to 12 per cent.

Sitharaman additional mentioned {that a} GoM can even be constituted to cope with the difficulty regarding compensation cess which is able to stop after March 2026.

The Council additionally deliberated on the GoM’s standing report on price rationalisation and on-line gaming.

The minister additional mentioned {that a} committee of secretaries headed by Extra Secretary (Income) shall be shaped on the IGST which is at the moment going through a unfavorable stability. It should look into methods to retrieve the cash from states.

#WATCH | Delhi: After the GST Council assembly, Union Finance Minister Nirmala Sitharaman says, “A committee of secretaries additionally determined at the moment, for the aim of explaining and in addition deciding on the right way to take the IGST (Built-in Items and Companies Tax) ahead. An in depth… pic.twitter.com/ePq7DEy4Jz

— ANI (@ANI) September 9, 2024