GST Council Meeting in Jaisalmer: Insurance Rate Changes on the Horizon

Finance Minister Nirmala Sitharaman arrives in Jaisalmer for a crucial GST Council meeting, where the focus is expected to be on rationalizing GST rates for health and life insurance. The Group of Ministers has submitted a report, highlighting an 18% GST rate on both types of insurance premiums.

Finance Minister Nirmala Sitharaman has touched down in Jaisalmer ahead of the pivotal GST Council meeting slated for Saturday. Welcoming her at the airport were Rajasthan's Deputy Chief Minister Diya Kumari and other state officials, signaling the importance of the upcoming discussions.

The GST Council, a body featuring the Union Finance Minister alongside representatives from every State and Union Territory, is set to deliberate on key issues, such as GST rate adjustments, exemptions, and administrative practices. Although the official agenda remains undisclosed, insiders have revealed that discussions will center around proposed changes to GST rates on health and life insurance products.

The insurance sector's GST-related concerns have been placed under the spotlight by the Group of Ministers, led by Bihar Minister Samrat Chaudhary. After conducting an in-depth study, the group has prepared a report for the Council's evaluation, highlighting that life and medical insurance premiums currently bear an 18% GST rate.

The role of the GST Council, a constitutional entity comprising state, union territory, and central representatives, is crucial in prescribing GST rates and exemptions. The meeting appears especially significant in the context of ongoing pressure from various opposition-led states' leaders, including West Bengal's Chief Minister Mamata Banerjee, who continue to lobby for a reduction in GST on insurance products. Notably, the INDIA alliance mounted a protest during the August monsoon session of Parliament, with prominent figures like Rahul Gandhi joining calls to revisit healthcare and life insurance GST rates.

The agenda for the current meeting harks back to the GST Council's 54th session in New Delhi on September 9, 2024, where it was decided to task a Group of Ministers with a thorough review of the GST implications on insurance products. The outcome of this review could signal pivotal changes in national tax policies. (ANI)

(With inputs from agencies.)