GST Council Meeting: A decision has not been taken on the reduction of GST on premium payment of health and life insurance. In the 54th meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman with the finance ministers of the states, there was a discussion on reducing the GST on premium payment of health and life insurance, but the matter has been sent to the GoM to study the issue further. A Group of Ministers has been formed under the chairmanship of Bihar Deputy Chief Minister Samrat Chaudhary to study the reduction in GST rate on health insurance. This GoM will have to prepare a report by the end of October 2024. And this will be discussed in the GST Council meeting in November 2024.
This will be discussed in the GST Council meeting in November
Finance Minister Sitharaman, while giving information about the decisions taken in the council meeting in a press conference after the GST Council meeting, said that a Group of Ministers has been formed under the chairmanship of the Deputy Chief Minister of Bihar to study further on the reduction of GST rates on health insurance. The names of other members of this committee will be announced soon. The Finance Minister said that this GoM will have to prepare and submit its report by the end of October 2024. And in the next meeting of the GST Council in November 2024, the reduction of GST rates on health insurance premium will be discussed.
Opposition targets the government for levying GST on insurance premium
In fact, the government is being targeted by the opposition over the GST imposed on health and life insurance. Not only the opposition, but senior government minister Nitin Gadkari has also written a letter to the Finance Minister demanding the removal of GST on the payment of premiums of life insurance and medical insurance. The Standing Committee of Parliament has also recommended this. In the Monsoon Session of Parliament, the Minister of State for Finance said in a written reply that in the last three years, GST of Rs 21,256 crore has been collected by imposing GST on health insurance premium and Rs 3274 crore GST has been collected on health reinsurance premium. Since the implementation of GST, 18 percent GST is being collected on health insurance.
Increased earnings from online gaming and casinos
In the press conference, the Finance Minister said that in the council meeting, a status report was given on the increase in revenue after increasing GST on online gaming and casinos. The Finance Minister said that GST revenue on online gaming has increased by 412 percent. In the month before the notification on online gaming, only Rs 1349 crore GST was collected which increased to Rs 6909 crore in the six months after the notification was issued. Revenue on casinos has increased by 30 percent and it has increased from Rs 164.6 crore to Rs 214 crore.
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