GST

Council May Decide on Lowering GST on Health Insurance

The Goods and Services Tax (GST) Council, in the upcoming 48th meeting, would consider two reports. One on setting up Appellate Tribunals and the other on decriminalising offences. The Union Finance Minister Nirmala Sitharaman will chair the virtual Council meeting on 17th December 2022.

Sources say that 

  • The Council might also consider reducing the GST on health insurance to 12% from the present rate of 18%.
  • The Group of Ministers (GoM) formed for finalising the GST levy on online gaming, casinos, and horse racing is yet to submit its report.
  • Hence, it is still uncertain whether the Council will review the GST rates on these items in the meeting.
  • However, if the GoM submits the report, the Council will take these up.
  • Another proposal for GST on cryptocurrencies may not be discussed in this meeting. There has been no clarity on this issue till now.
  • The concept of cryptocurrencies requires more discussion due to its complexity.

The GoM is in favour of levying a 28% GST on online gaming, casinos and horse racing. However, there is no consensus among GoM on whether to charge tax only on the fees or the total consideration.

Also, a few states are planning to request to extend the GST compensation period ended recently in June 2022, in this Council meeting. We must wait till 17th December 2022 to get an update on all these issues.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

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