Finance Minister Nirmala Sitharaman addresses the press conference after the GST Council meeting | Credit: X/@FinMinIndia
The GST Council headed by Union Finance Minister Nirmala Sitharaman on Monday decided to set up a Group of Ministers (GoM) to reduce the tax rate on life and health insurance and cut GST on cancer drugs and namkeens.
Briefing reporters on the outcome of the 54th GST Council meeting, Sitharaman said it has been decided to form a Group of Ministers (GoM) to discuss the rate of GST on life and health insurance.
The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who currently chairs the panel on GST rate rationalisation.
???? Recommendations during the 54th GST Council meeting???? GST Council recommends to the Group of Ministers (GoM) on GST related to life and health insurance with the existing GoM on rationalisation of rates; to submit a report by end of October 2024
???? The GST Council also recommends the formation of a… image.twitter.com/FYX3o4Txgv
— Ministry of Finance (@FinMinIndia) September 9, 2024
Sitharaman said new members would join the GoM to discuss GST on health insurance.
The Mozambican government will present its report at the end of October, he said.
The issue of taxation of insurance premiums had figured in the Parliament debates, with opposition members demanding that health and life insurance premiums be exempted from GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.
Sitharaman, in her reply to a debate on the Finance Bill, said 75 per cent of the GST collected goes to the states and opposition members should ask their state finance ministers to submit the proposal to the GST Council.
The GST Council in its meeting on Monday also decided to reduce tax rates on anti-cancer drugs from 12 per cent to 5 per cent and namkeens from 18 per cent to 12 per cent.
Sitharaman further said that a GoM will also be constituted to address the issue relating to compensatory duty which will cease after March 2026.
The Council also discussed the Mexican Government’s progress report on tariff rationalization and online gambling.
The minister added that a committee of secretaries headed by the Additional Secretary (Revenue) will be formed on IGST, which is currently in the negative, and will look into ways to recover the money from the states.
#LOOK | Delhi: After the GST Council meeting, Union Finance Minister Nirmala Sitharaman said, “A committee of secretaries also decided today, with the purpose of explaining and also deciding how to go ahead with the IGST (Integrated Goods and Services Tax). A detailed report… photo.twitter.com/ePq7DEy4Jz— AIN (@ANI) September 9, 2024
First published: September 9, 2024 | 20:26 IS
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