Sources said the fitment committee, comprising Centre and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and the revenue implications.
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GST council meeting Key expectations
The GST Council will decide on whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals, like senior citizens.
The deliberations will also happen with regard to the goods and services tax (GST) cut on life insurance premium.In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.The issue of taxation on insurance premium figured in Parliament discussions with opposition members demanding that health and life insurance premiums be exempt from GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.
Read More: GST council meeting likely to give big relief on Health Insurance premiums
Finance Minister Nirmala Sitharaman in her reply to discussion on the Finance Bill had said 75 per cent of the GST collected goes to states and opposition members should ask their state finance ministers to bring the proposal at the GST Council.
West Bengal Finance Minister Chandrima Bhattacharya had raised the issue in the meeting of the Group of Ministers (GoM) on rate rationalisation last month and the matter was referred to the fitment committee for further data analysis.
The GoM had opined against any tinkering of four-tier GST slab of 5, 12, 18, and 28 per cent for the time being. The panel, however, had asked the fitment committee to look into any scope for rationalisation of rates of goods and services.
GST Council Meeting GST Expectations on Online Gaming
With regard to online gaming, Centre and state tax officers will present a “status report” before the GST Council. The report would include GST revenue collection from the online gaming sector before and after October 1, 2023.
From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28 per cent GST. Prior to that, many online gaming companies were not paying 28 per cent GST, arguing that there were differential tax rates for games of skill and games of chance.
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The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28 per cent tax and subsequently Central GST law was amended to make the taxation provision clear.
Offshore gaming platforms were also mandated to register with GST authorities and pay taxes, failing which the government would block those sites.
The council had then decided that the taxation on online gaming sector would be reviewed after six months of its implementation.
PTI Sources said the Council would deliberate on the status of taxation on the sector and any change in tax rates is unlikely.
(With PTI inputs)