The much-anticipated 54th meeting of the Goods and Services Tax (GST) Council, spearheaded by Finance Minister Nirmala Sitharaman, is scheduled to kick off on Monday, setting the stage for critical deliberations on a myriad of issues that could have far-reaching implications across various sectors. The council’s agenda includes crucial topics such as the taxation of insurance premiums, recommendations for rate rationalisation from the Group of Ministers (GoM), and an assessment of GST revenue derived from the burgeoning online gaming industry.
Sources close to the developments revealed to news agency PTI that the fitment committee, comprising officials from both the Central and state tax departments, will present a comprehensive report encompassing the GST levies imposed on life, health, and reinsurance premiums, as well as the potential revenue ramifications associated with these taxations.
One of the pivotal decisions awaiting the GST Council pertains to the deliberation on whether to alleviate the tax burden on health insurance premiums, which currently stand at 18 per cent, or to consider exemptions for specific demographic segments, notably senior citizens.
In the financial year 2023-24, the combined GST collections from health insurance premiums amounted to Rs 8,262.94 crore, with an additional Rs 1,484.36 crore gathered through GST levies on health reinsurance premiums.
Taxation on insurance premiums has emerged as a topic of significant contention, with discussions in Parliament reflecting opposition members’ calls for the exemption of health and life insurance premiums from the purview of GST. The matter garnered attention when Transport Minister Nitin Gadkari penned a letter to Finance Minister Nirmala Sitharaman, underscoring the urgency of addressing the issue.
Moreover, concerning the online gaming sector, a detailed “status report” compiled by Central and state tax authorities will be presented before the GST Council. This report will encapsulate the GST revenue generated from online gaming activities both before and after the pivotal date of October 1, 2023.
Following the imposition of a 28 per cent GST on entry-level bets placed on online gaming platforms and casinos from October 1, 2023, the council’s focus will also extend to understanding the taxation landscape within the sector, with anticipations leaning towards minimal alterations in existing tax rates.
Aside from these critical discussions, the Council is poised to receive updates on the ongoing crackdown against fraudulent registrations, highlighting the strides made in combatting illicit practices and the consequent actions taken against such entities. The meeting will also feature a presentation on the identified instances of suspected GST evasion, reflecting the Council’s unwavering commitment to maintaining the integrity of the taxation system.
As the GST Council convenes to address these pressing matters, the outcomes of the meeting are anticipated to shape the fiscal landscape and regulatory framework governing key sectors, underscoring the Council’s pivotal role in steering India’s taxation policies towards greater efficiency and transparency.
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