Insurance Premium: The GST Council meeting is going to be held on Monday, September 9. During this, the most important issue is going to be GST on insurance premium. Apart from this, the issue of tax on online gaming can also be discussed during this meeting. The Group of Ministers had already recommended rationalizing the GST rate on insurance premium. If the GST Council headed by Finance Minister Nirmala Sitharaman decides to reduce GST, then it will be a big relief for the customers.
The fitment committee will submit its report on insurance
Citing sources, the Money Control report claims that the Fitment Committee may present its report on other insurance including life insurance and health insurance. This committee includes officials from the Center and the states. Currently, 18 percent GST is levied on health insurance. In the financial year 2023-24, the Center and the states earned Rs 8,262.94 crore through health insurance premium. Apart from this, they got Rs 1,484.36 crore from health reinsurance premium. If GST is reduced, then the impact on this figure will also be discussed in the GST Council.
Many MPs including Nitin Gadkari have raised the demand
The opposition, including Union Minister Nitin Gadkari and many allied MPs of the government, have also raised their voice on this issue. During the discussion on the Finance Bill, Nirmala Sitharaman had said that 75 percent of the GST collection goes to the states. In such a situation, the states will have to propose a reduction in GST. The GST Council does not want to make any changes in the GST slab at the moment. However, it is ready to make changes on some issues.
Tax on online gaming will not be reduced, strictness will continue
Apart from this, the report on tax on online gaming can also be discussed on Monday. 28 percent GST was imposed on online gaming companies from October 2023. These companies demand that it be removed. However, sources claimed that the chances of this happening are negligible. However, action can be taken against companies getting fake registration. GST Intelligence is continuously taking action against such companies.
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