GST Council to deliberate on taxation of insurance premium, report on online gaming

GST Council to discuss taxation on insurance premiums, rate rationalization, and online gaming in upcoming meeting.

The GST Council on Monday (September 9, 2024) is expected to deliberate on a host of issues, including taxation of insurance premium, GoM's suggestions on rate rationalisation, and a status report on online gaming, sources said.

Sources claimed 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, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, will decide on whether to reduce the tax burden on health insurance from the current 18% or exempt certain categories of individuals, like senior citizens.

The deliberations will also happen concerning the goods and services tax (GST) cut on life insurance premium.

In 2023-24, the Centre and States collected ₹8,262.94 crore through GST on health insurance premiums, while ₹1,484.36 crore was collected on account of GST on health reinsurance 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 Ms. Sitharaman on the issue.

Finance Minister Nirmala Sitharaman in her reply to the discussion on the Finance Bill had said 75% of the GST collected goes to states and opposition members should ask their State finance ministers to bring the proposal at the GST Council.