GST Council Defers Decision on Health Insurance Premiums; GoM to Submit Report by October
A decision on reducing GST on health insurance premiums will now be made in November. In the 54th GST Council meeting, a Group of Ministers (GoM) was formed to discuss this issue.
Additionally, universities and research centers recognized by the central and state governments will no longer have to pay GST on grants. GST on cancer medicines has also been reduced from 12% to 5%. Finance Minister Nirmala Sitharaman shared these major updates during a press conference after the meeting.
GoM formed for health insurance
Regarding the 18% GST on health insurance premiums, the Finance Minister stated that a GoM has been formed to review the issue. The GoM will submit its report by the end of October, and the matter will be discussed in the November meeting, said Nirmala Sitharaman.
Key highlights from the GST Council meeting:
– GoM submitted a status report on GST rate rationalization.
– Revenue from online gaming increased by 412% in six months, and casino revenue grew by 30%.
– There was agreement to collect compensation cess until 2026, and a GoM will be formed for this.
– Universities and research centers recognized by central and state governments will no longer be subject to GST on grants.
– GST on snacks was reduced from 18% to 12%.
– GST on car and motorcycle seats was increased from 18% to 28%.
– GST Council has decided to exempt foreign airlines from taxes on imported services.
(This news is being updated.)
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