The Union Finance Minister Nirmala Sitharaman chaired the 54th meeting of the GST Council today (9th September 2024) at Sushma Swaraj Bhawan in New Delhi. The Union Minister of State for Finance M.P.P. Chaudhary, along with the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana also participated in the meeting.
The agenda of the meeting included deliberations on subjects such as taxation on life, health and reinsurance premiums.
The GST council aspires to reduce tax burden on health insurances for which a specific proposal has been referred to the Group of Ministers (GoM) for further analysis. The GoM will meet on 23rd September 2024 to discuss insurance rate rationalization, and the modalities will be decided in the next GST council meeting which will be held in November.
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The existing GoM along with some other states including members of Centre and States will decide on the issues concerning health and life insurance premiums in detail.
The GST Council has established a Group of Ministers (GoM) to address issues related to medical and health insurance.The Minister stated that the GST Council will decide on the reduction of tax burden on health insurance from the current GST rate of 18 per cent or exempt certain categories of individuals such as senior citizens.
The council also came up with implications of GST reduction on life, health and reinsurance premiums,also stating that in the year 2023-24 the Centre and States had collected Rs 8,262.94 through GST on Health Insurance Premium and Rs 1,484.36 by GST on Health Reinsurance Premium.
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The Minister requested a report to be submitted by the Group of Ministers by October 2024, after conducting a comprehensive study and analysis conducted over the course of one and a half months.
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