Business News | Rate Rationalization on Insurance Part of Agenda for Next GST Council Meeting: Sources
Get latest articles and stories on Business at LatestLY. The proposed rationalisation of GST rates on health and life insurance products will be on the agenda for the upcoming Council meeting on Saturday in Jaisalmer, sources said.
New Delhi [India], December 18 (ANI): The proposed rationalisation of GST rates on health and life insurance products will be on the agenda for the upcoming Council meeting on Saturday in Jaisalmer, sources said.
Sources said that the Group of Ministers on insurance, chaired by Bihar Minister Samrat Chaudhary, has submitted the report to the GST Council.
The Group of Ministers was tasked to look into GST rates related to medical insurance and come up with a report so that the GST Council could take up the matter.
Both life insurance and medical insurance premiums attract a GST rate of 18 per cent.
Recently, many leaders from opposition-ruled states have requested Finance Minister Sitharaman to reduce GST on medical insurance and premiums. West Bengal Chief Minister Mamata Banerjee is one of them.
GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a Constitutional body comprising representatives from States/UTs and the Centre.
The issue of GST on life and health insurance was placed before the GST Council in its 54th Meeting held on September 9, 2024, in New Delhi.
After detailed deliberations, the GST Council recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance.
The INDIA alliance leaders held a protest against the Central government outside the Parliament during the monsoon session of Parliament in August, demanding to roll back GST on health and life insurance products. Congress leader Rahul Gandhi had also joined the protest.
The GST Council, consisting of the Union Finance Minister and representatives from all States and Union Territories, was established to make decisions on various aspects of GST, including tax rates, exemptions, and administrative procedures.
The Goods and Services Tax (GST) collections have gone up by 9.3 per cent so far in the current fiscal 2024-25 to Rs 14.56 lakh crore.
In the April-November period of last year, the tax mop-up was Rs 13.32 lakh crore.
The surge in recent GST collections reflects a positive trajectory for India's economy, underscoring robust domestic consumption and buoyant import activity. The figures bode well for the country's fiscal health and economic recovery efforts, signalling resilience amidst global uncertainties.
In April this year, the total GST mop-up surged to a record high of Rs 2.10 lakh crore.
During the financial year 2023-24, the total gross GST collection was recorded at Rs 20.18 lakh crore, an 11.7 per cent increase compared to the previous fiscal year. (ANI)
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)