GST Council to discuss tax on insurance premiums, e-gaming tomorrow
The Goods and Services Tax (GST) Council, led by Finance Minister Nirmala Sitharaman, will discuss potential changes in the taxation of insurance premiums and online gaming tomorrow. The current tax rate on health insurance stands at 18%. The council will consider whether to lower this rate or exempt certain groups such as senior citizens. Discussions will also include possible reductions in the GST applied to life insurance premiums.
Fitment Committee to present report
The Fitment Committee, consisting of central and state tax officials, is expected to present a report on the GST applied to life, health, and reinsurance premiums. The report will also address the revenue implications of these taxes. In 2023-24 alone, the central and state governments collected ₹8,262.94 crore through GST on health insurance premiums, and an additional ₹1,484.36 crore from GST on health reinsurance premiums.
Review of taxation on online gaming
The GST Council will also review the taxation on the online gaming sector. Central and state tax officials are set to present a "status report" on this matter. The report will detail GST revenue collections from online gaming before and after October 1, 2023. From this date, entry-level bets placed on online gaming platforms and casinos were subject to a 28% GST rate.
Council to address fake registration and tax evasion
The GST Council is also expected to address the issue of fake registration and tax evasion. A report on an ongoing drive against fraudulent registrations will be presented, detailing its success and actions taken against such entities. The total amount of suspected GST evasion will also be disclosed. This initiative, running from August 16, 2024, to October 15, 2024, aims at identifying suspicious/fake GSTINs for necessary verification and remedial action.
GST Council to approve notifications and amendments
In addition to these discussions, the GST Council is set to approve various notifications, including an amnesty scheme announced in its previous meeting. Amendments to the GST law decided by the council in its last meeting on June 22, were passed by Parliament last month through the Finance Act, 2024. These amendments included taxpayer-friendly measures such as waiving interest and penalties for demand notices issued during the first three years of GST implementation.
