New Delhi: There is no discussion on changing the GST rate of any item in the GST Council meeting to be held on Monday. However, the Fitment Committee's report will be discussed regarding the change in the 18 percent GST on health and life insurance premium. In this matter, the Fitment Committee has submitted its report to the Council and this matter is also included in the agenda of Monday's meeting.

Limited relief may be available on premium

Sources say that the 18 percent GST levied on health and life insurance premiums cannot be removed immediately, as it gives a good amount of revenue to the state and the Center. After this issue heated up in the last Parliament session, limited relief can be given on its premium. According to sources, it is possible that elderly people or people above 60 years of age should be given relief from GST on health and life insurance premiums. However, sources also say that relief should be given on GST levied only on premiums up to a certain amount, so that the lower and middle class can get some relief. The Center and the states collected Rs 8,262.94 crore in 2023-24 from GST levied on health insurance premiums. At the same time, the Center and the states collected Rs 1,484.36 crore in 2023-24 from GST on health reinsurance premiums.

Nitin Gadkari had raised this issue

After Union Minister Nitin Gadkari wrote a letter to the Finance Minister demanding the removal of GST on health insurance, this issue became heated and the opposition parties also strongly raised the demand for removal of GST from health insurance during the debate in the last Parliament session. However, Finance Minister Nirmala Sitharaman has made it clear that health insurance can be exempted from GST or a decision can be taken on it only after the consent of the Finance Ministers of the states in the Council meeting. Recently, the Finance Minister had also said that in the Council meeting, the Finance Ministers of the states are not in favor of removing or reducing the GST of any item, because it affects their revenue. Therefore, it is not easy to reduce or remove GST.

These issues will also be on the agenda of the meeting

1. In the meeting, some foreign aviation companies including information technology company Infosys may be given relief from GST related notice.
2. A clarification can also be issued by the Council regarding the GST levied on helicopter services involved in the pilgrimage.
3. Central and state tax authorities will present a status report before the GST Council regarding online gaming.