New GoM on health insurance to submit report by October; Council may take a call on 18% GST levy in November

54th GST Council meeting chaired by Finance Minister Sitharaman made key decisions on tax rates, insurance, real estate, and more.

The 54th meeting of the GST Council on Monday (September 9, 2024) chaired by Finance Minister Nirmala Sitharaman took several decisions, including two status reports that were submitted.

Ms. Sitharaman announced the formation of a Group of Ministers (GoM) to look into the 18% GST levy on insurance. “We have told them to come up with a report by the end of October and the GST Council will meet in November and finalise the decision based on the GoM’s recommendation,” she said. .

The GST Council, chaired by Ms. Sitharaman and comprising State Ministers, was expected to decide on whether to reduce the tax burden on health insurance from the current 18% or exempt certain categories of individuals, like senior citizens. However, the announcement has been deferred to the next meeting. Ms. Sitharaman said, “The Council felt it might be worth a GoM to look into these issues quickly and the November GST Council could take a call on it.”

Many Resident Welfare Associations have asked if they sign up for group coverage, and we need to deliberate on life insurance and term insurance, she said.

The rate rationalisation GoM presented details of what has happened till now and has called for a meeting on September 23. The GoM on real estate also submitted its status report. Then a status on the casinos, online gaming and horse racing GST levy, was also presented to the Council.

Ms. Sitharaman said the revenue from online gaming has increased by 412% and has reached ₹6,909 crore in just six months.

Similarly, revenues from casinos have increased 30% to ₹214 crore in the six months after the GST was notified, she added.