GST council doubtless to offer large aid to people, senior residents on Well being Insurance coverage premiums

The 54th GST Council assembly is about to make a significant determination on the GST charge on medical insurance premiums on Monday.

Based on sources, the GST Council is probably going to offer vital aid to people and senior residents by slashing the GST charge on medical insurance premiums. Presently, there’s an 18 per cent GST charge on well being and life insurance coverage insurance policies.

Sources advised ANI that the fitment committee, comprising central and state tax officers, mentioned the professionals and cons of lowering the GST charge on well being premiums on Sunday.

On Monday, a report on GST levied on life, well being, and reinsurance premiums, together with the income implications, will probably be offered earlier than the GST Council. After that, Council members will focus on and resolve whether or not to cut back the GST charge on medical insurance premiums.

Based on a supply, the GST Council is more likely to slash the GST charge on medical insurance premiums from 18 per cent to nil. Nonetheless, the 18 per cent GST charge on group medical insurance premiums is more likely to stay the identical.

Sources additionally added {that a} proposal to tax on-line funds above Rs 2,000 is more likely to be mentioned within the GST Council assembly. Presently, on-line funds made by cost gateways usually are not taxed.

The GST Council is chaired by Finance Minister Nirmala Sitharaman and includes state ministers as its members.

Final month, after the primary assembly of the reconstituted Group of Ministers on GST for charge rationalisation, Samrat Chaudhary, Bihar Deputy CM and Convenor of GST GoM on charge rationalisation, had stated that proposals had come for charge modifications within the medical insurance sector, and the group was reviewing the representations.

West Bengal Finance Minister Chandrima Bhattacharya has stated that he has submitted a request to cut back the 18 per cent GST charge on life and medical insurance premiums.

“I’ve positioned the request for lowering GST on life and medical insurance. I’ve been advised that the fitment committee is trying into it,” Bhattacharya stated.

Within the final GST Council assembly held on June 22, Finance Minister Nirmala Sitharaman introduced a number of vital measures, together with Aadhaar biometric integration, and exemptions in railway companies, amongst others.