GST Council Meeting: Key Topics on the Agenda
GST Council Meeting: Today, September 9, the GST Council is meeting to discuss important tax-related issues. The Council, led by Union Finance Minister Nirmala Sitharaman and including state finance ministers and tax officials, will review several key topics.
Insurance Premiums
One major topic on the agenda is the taxation of insurance premiums. The Council will consider lowering the GST rate on health insurance premiums, which is currently set at 18%. Certain groups, like senior citizens, may also be exempt from this tax. Additionally, they will discuss reducing GST on life insurance premiums.
This discussion comes amid concerns raised in Parliament about the high GST rates on insurance. Opposition leaders and some BJP members have called for tax exemptions on health and life insurance. Finance Minister Sitharaman has mentioned that 75% of the GST collected from insurance premiums goes to the states, and it is up to the state finance ministers to propose changes to the Council.
Rate Rationalisation
The Council will also address the issue of GST rate rationalisation, which West Bengal Finance Minister Chandrima Bhattacharya raised in an August meeting. While the Group of Ministers (GoM) has resisted changing the current four-tier GST slab system (5%, 12%, 18%, 28%), they have asked the fitment committee to explore potential adjustments.
Online Gaming Revenue
Another key agenda item is the status of GST on online gaming revenues. The Council will review how GST collections from online gaming have changed since the new 28% tax rate was introduced on October 1, 2023. Prior to this, many online gaming companies did not pay GST. The Council will assess the effectiveness of this tax and discuss whether any changes are needed. Offshore gaming platforms are also required to register and pay GST, with non-compliance resulting in site blockages.
Fake GST Registrations
The Council will review the ongoing crackdown on fake GST registrations. Launched on August 16 and running until October 15, this drive aims to identify and remove fake GSTINs and detect GST evasion. A previous drive revealed significant evasion, with suspected amounts totaling Rs.24,010 crore.
Approval of Previous Recommendations
Finally, the GST Council is expected to approve several notifications from their last meeting on June 22. This includes an amnesty scheme and various amendments to the GST law.
Also read: Key Financial Changes Coming in September: Check here
Recommendations to waive interest and penalties for certain demand notices, adjust monetary limits for GST appeals, and introduce a 12% GST on milk cans and carton boxes will also be reviewed. The outcome of today's meeting will have significant implications for GST policies and tax practices nationwide.
.