New Delhi, 8 Sept

The goods and services tax (GST) Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premium, GoM's suggestions on rate rationalisation, and a status report on online gaming, sources said.

Sources said the fitment committee, comprising Centre and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and the revenue implications.

GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, will decide on whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals, like senior citizens.

The deliberations will also happen with regard to the GST cut on life insurance premium.

In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.

The issue of taxation on insurance premium figured in Parliament discussions with opposition members demanding that health and life insurance premiums be exempt from GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue.

With regard to online gaming, Centre and state tax officers will present a "status report" before the GST Council. The report would include GST revenue collection from the online gaming sector before and after 1 October, 2023.

Sources said the Council would deliberate on the status of taxation on the sector and any change in tax rates is unlikely.

Besides, the Council is likely to be apprised about the ongoing drive against fake registration, the success of the drive and action taken against such entities. The total amount of suspected GST evasion would also be presented before the Council.

An amount of Rs 24,010 crore (state - Rs 8,805 crore + Centre - Rs 15,205 crore) of suspected tax evasion was detected during the special drive.

Also, the Council would approve notifications, including that of the amnesty scheme, announced in the last council meeting. The various amendments to GST law decided by the council in its previous meeting on 22 June were passed by Parliament last month vide Finance Act, 2024. -PTI