&w=860&resize=860,0&ssl=1 "GoM on GST on well being, life insurance coverage premium to fulfill on October 19 | Economic system & Coverage Information")
The ToR additionally embody counsel tax charges on life insurance coverage, together with time period insurance coverage, life insurance coverage with funding plans, whether or not particular person or group and re-insurance
The ministerial panel to resolve on reducing items and providers tax (GST) on well being and life insurance coverage premiums can have its first assembly on October 19, officers mentioned.
At the moment, 18 per cent GST is levied on insurance coverage premiums and there have been calls for to both exempt or scale back the tax.
The GST Council in its assembly earlier this month determined to arrange a 13-member GoM to resolve on tax on well being and life insurance coverage premiums.
Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM.
The panel contains ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana.
The GoM has been mandated to submit its report back to the Council by October-end.
A ultimate name by the council on taxation of insurance coverage premiums is prone to be taken within the subsequent assembly in November, primarily based on the GoM report.
“The GoM on GST on insurance coverage will meet on October 19 in Delhi,” the official mentioned.
The phrases of reference (ToR) of the panel additionally contains suggesting tax price of well being/medical insurance coverage, together with particular person, group, household floater, and different medical insurance coverage for varied classes like senior residents, center class, individuals with psychological sickness.
The ToR additionally embody counsel tax charges on life insurance coverage, together with time period insurance coverage, life insurance coverage with funding plans, whether or not particular person or group and re-insurance.
Some Opposition-ruled states, together with West Bengal, had demanded full exemption of GST on well being and life insurance coverage premiums, whereas another states have been in favour of reducing the tax to five per cent.
Even Union Transport Minister Nitin Gadkari had in July written to Finance Minister Nirmala Sitharaman on the difficulty saying “levying GST on life insurance coverage premium quantities to levying tax on the uncertainties of life”.
In 2023-24, the Centre and states collected Rs 8,262.94 crore by way of GST on medical insurance premium, whereas Rs 1,484.36 crore was collected on account of GST on well being reinsurance premium.
Sitharaman in her reply to dialogue on Finance Invoice within the Lok Sabha in August had mentioned that 75 per cent of the GST collected goes to states and the Opposition members ought to ask their state finance ministers to deliver the proposal on the GST Council.
(Solely the headline and film of this report could have been reworked by the Enterprise Customary employees; the remainder of the content material is auto-generated from a syndicated feed.)
First Printed: Sep 26 2024 | 12:12 PM IST
