55th GST Council Meeting to Consider Rate Rejig on Health, Life Insurance in November

📅 By Admin | September 10, 2024
📂 Categories: GST Recent News
⏳ 4 Min Read

The GST Council will address tax rates on health and life insurance in its next meeting scheduled for November. Finance Minister Nirmala Sitharaman made this announcement during a recent press briefing. She revealed that the Council has formed a Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, to review the current GST on insurance premiums. The GoM is expected to submit its findings by the end of October, which will inform the Council’s decisions in November.

Currently, the GST rate on health and life insurance premiums is 18%, though some policies, such as endowment plans, have different rates. The Council also plans to create another GoM, led by Minister of State Pankaj Chaudhary. This group will focus on the future of the compensation cess, which is scheduled to end on March 31, 2026. The compensation cess was introduced to cover state revenue losses caused by the GST rollout.

In other notable updates, Finance Minister Sitharaman highlighted a significant increase in revenue from online gaming. Collections have soared by 412%, reaching ₹6,909 crore since the 28% GST rate was imposed on October 1, 2023. This dramatic rise reflects the sector’s growth and its substantial contribution to GST revenue.

Additionally, the Council has exempted foreign airlines from GST on the import of services from abroad. This decision also addresses ₹10,000 crore worth of notices issued for prior periods. These measures are part of the Council’s ongoing efforts to refine the GST framework and support various sectors effectively.

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