The GST Council has decided to take a call on reducing tax rate on premiums of health and life insurance policies at its next meeting in November, an issue which was raised by Opposition parties in the last Parliament session.
Union Finance Minister Nirmala Sitharaman on Monday chaired the 54th meeting of the GST Council, at Sushma Swaraj Bhawan, in New Delhi. Briefing reporters on decisions, Nirmala Sitharaman said a Group of Ministers will be constituted to look into the GST on premiums of life and health insurance policies.
While there appears to be a wide consensus among the states on reducing 18 per cent tax levied on health and life insurance policies, the Group of Ministers to be headed by Bihar Deputy Chief Minister Samrat Choudhary has been asked to submit its report by the end of next month on issues such as levy of GST on policies bought by resident welfare associations.
“The 54th meeting of the GST Council took several decisions. The Group of Ministers (GoM) on rate rationalisation and the GoM on real estate submitted status reports today. Status on online gaming and casinos was submitted. Revenue from online gaming has increased by 412% at Rs 6909 cr in 6 months,” she added.
“2 new GoMs (Group of Ministers) have been decided. One is on 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,” the Union Minister stated.
She said the Council in its meeting decided to cut GST on certain cancer drugs, helicopter rides for pilgrimage to Kedarnath and namkeens. The Council decided to bring down GST to 5 per cent on the transport of passengers by helicopters on seat share basis and to regularize the GST for past period on ‘as is where is’ basis.
