States Request For GST Rate Cut On Insurance
West Bengal finance minister Chandrima Bhattacharya says she has put in a request to reduce GST rates of 18 per cent on life and health insurance premiums
Before the Goods and Services Tax (GST) council meeting scheduled on 9 September, the reconstituted group of ministers on GST for rate rationalisation met for the first time on Thursday. West Bengal finance minister Chandrima Bhattacharya says she has put in a request to reduce GST rates of 18 per cent on life and health insurance premiums.
She said, "I have placed the request of reducing GST on life and health insurance. I have been told that the fitment committee is looking into it." Krishna Byre Gowda, Karnataka Minister said, "We have discussed the issue of relaxation in GST rates on insurance; we have asked for more data on it"On rate rationalisation or reducing the number of slabs under GST Bhattacharya said, “No member of the rate rationalisation committee is in favour of changing or reducing the number of current slabs under GST”
On changes in current GST slabs Krishna Byre Gowda, says, "Why disturb something which is going on smoothly." However, sources from the GoM told ANI that, this was the first meeting of the reconstituted GoM on rate rationalisation and no decision has been taken on reducing slabs, cutting GST rates on different items or reducing GST rate on life and health insurance premiums.
Proposals have come for reducing rates for Insurance, hospitality and beverages, and the online gaming sector, among many. The GoM for rate rationalisation was reconstituted in June 2024, after the formation of the new government at the centre and new state governments in Bihar, Andhra Pradesh and Telangana.
Bihar Deputy Chief Minister Samrat Chaudhary was appointed as the convenor of the GoM on GST rate rationalisation. The other members of the reconstituted panel are Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, and Rajasthan Medical, and Health Services Minister Gajendra Singh.
The GoM also include West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.GST rate rationalisation has been pending before the committee for a long and it was anticipated that a decision would be taken regarding the fitment of the listed items under each GST slab. Particularly, products widely used by the public may be suggested for a transition from the 12 per cent high-rate slab to the 5 per cent slab.
In the last GST Council meeting held on 22 June, Finance Minister Nirmala Sitharaman announced several significant measures, including Aadhaar biometric integration, and exemptions in railway services, among others. (ANI)
