Fitment Committee Report
on Insurance and Health GST before Council
·
In 2023-24,
the Centre and states collected Rs 8,262.94 crore through GST on health insurance
premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance
premium.
·
Finance
Minister Nirmala Sitharaman in her reply to discussion on the Finance Bill had said
75 per cent of the GST collected goes to states.
·
GST
Expectations on Online Gaming. With regard to online gaming, Centre and state tax
officers will present a "status report" before the GST Council. The report
would include GST revenue collection from the online gaming sector before and after
October 1, 2023.
·
Offshore
gaming platforms were also mandated to register with GST authorities and pay taxes,
failing which the government would block those sites.
The
54th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman
and comprising state ministers began on Monday.
The
Council 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, PTI sources said.
Sources
said 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.
GST
council meeting Key expectations The GST Council will decide on whether to reduce
the tax burden on health insurance from the current 18 per cent or exempt certain
categories of individuals, like senior citizens.
The
deliberations will also happen with regard to the goods and services tax (GST) cut
on life insurance premium.
In
2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health
insurance premium, while Rs 1,484.36 crore was collected on account of GST on health
reinsurance premium.
The
issue of taxation on insurance premium 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 Sitharaman on the issue.
Finance
Minister Nirmala Sitharaman in her reply to discussion on the Finance Bill had said
75 per cent of the GST collected goes to states and opposition members should ask
their state finance ministers to bring the proposal at the GST Council.
West
Bengal Finance Minister Chandrima Bhattacharya had raised
the issue in the meeting of the Group of Ministers (GoM)
on rate rationalisation last month and the matter was referred to the fitment committee
for further data analysis.
The
GoM had opined against any tinkering of four-tier GST
slab of 5, 12, 18, and 28 per cent for the time being. The panel, however, had asked
the fitment committee to look into any scope for rationalisation of rates of goods
and services.
GST
Council Meeting GST Expectations on Online Gaming. With regard to online gaming,
Centre and state tax officers will present a "status report" before the
GST Council. The report would include GST revenue collection from the online gaming
sector before and after October 1, 2023.
From
October 1, 2023, entry-level bets placed on online gaming platforms and casinos
were subject to 28 per cent GST. Prior to that, many online gaming companies were
not paying 28 per cent GST, arguing that there were differential tax rates for games
of skill and games of chance.
The
GST Council in its meeting in August 2023 had clarified that online gaming platforms
were required to pay 28 percent tax and subsequently Central GST law was amended
to make the taxation provision clear.
Offshore
gaming platforms were also mandated to register with GST authorities and pay taxes,
failing which the government would block those sites.
The
council had then decided that the taxation on online gaming sector would be reviewed
after six months of its implementation.
PTI
Sources said the Council would deliberate on the status of taxation on the sector
and any change in tax rates is unlikely.