Image Source : PTI FM Sitharaman will lead the GST Council meeting today.
The 54th meeting of the Goods and Services Tax (GST) Council, under the leadership of FM Nirmala Sitharaman, is all set to begin on Monday. The council this time will discuss several issues that could significantly impact multiple sectors. The council will discuss the taxation of insurance premiums, rate rationalisation suggestions from the Group of Ministers (GoM), and the status of GST collections from online gaming.
Sources told news agency PTI that 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.
The GST Council will also decide whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals, like senior citizens.
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 premiums.
Taxation on insurance premium
The issue of taxation on insurance premiums 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.
Finance Minister Nirmala Sitharaman in her reply to the 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.
Online gaming report
About the online gaming, the 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.
Sources further added that the Council would deliberate on the status of taxation on the sector and any change in tax rates is unlikely.
Drive against fake registration
Apart from all this, the Council is likely to be apprised about the ongoing drive against fake registration, the success of the drive and action taken against such entities. The total amount of suspected GST evasion would also be presented before the Council.
The drive, from August 16, 2024, to October 15, 2024, is aimed at detecting suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers.
