GST Council meeting likely to be held on December 21-22: GST on health, long-term insurance may be exempted
The 55th meeting of the GST Council may be scheduled for December 21-22 after the previous discussion in September this year. This time the focus will be on insurance tax reform as the new Group of Ministers (GoMs) is expected to submit a report by the end of October 2024.
According to a PTI report, two ministerial panels set up by the GST Council are expected to meet on October 19 to discuss the revision of the GST rate and the reduction of the 18 percent tax rate on health and life insurance premiums.
This was reportedly the first meeting of the 13-member GoM, under Bihar Deputy Chief Minister Samrat Choudhary, which was formed to raise taxes on health and health insurance premiums.
What to expect from the 55th meeting of the GST Council?
As the GoM’s proposal sought to exempt health insurance premium up to Rs 5 lakh sum assured, this time we can expect GST on term insurance and health insurance (5 lakh coverage) to be reduced to zero from 18 percent earlier. .
In addition, there may also be discussions about co-borrowing -whether relief from GST assessment should be given.
Reportedly, to promote cooperative lending between banks and NBFCs, a committee headed by SBI has recommended exemption from 18% GST.
There is a perception that the GoMs cannot reach an agreement on the issues before the Committee. Also, rate rationalization is not expected to be discussed in the December GST meeting,
