The goods and services tax (GST) Council, chaired by Union finance minister Nirmala Sitharaman, on Monday is likely to discuss several key taxation issues, including levy on insurance premium, Group of Minister's or GoM's suggestions on rate rationalisation and online gaming among others, a source privy to development said on Sunday. The move of the government aims at streamlining the seamless taxation facilities to the taxpayers in the country. “Nevertheless, the fitment committee, comprising Centre and state tax officials, is also expected to present a report on GST levied on life, health and reinsurance premiums and the revenue implications in the GST regime,” the source said.
The much-talked about issue of levy on insurance premium figured in Parliament discussions with opposition members demanding that health and life insurance premiums be exempt from the GST. Even Union transport minister Nitin Gadkari wrote to the finance minister to look into the issue on an urgent basis for the betterment of the people. However, the GST Council will take a final call 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 GST reduction on life insurance premium,” the source added. After Gadkari's letter, Sitharaman in her reply to discussion on the Finance Bill had said 75 per cent of the GST collected goes to states and opposi.
