The GST Council, which would conduct its 48th meeting next week (December 17) via videoconferencing, is likely to discuss reducing the GST rate on health insurance from the current 18 per cent to 12 per cent now, according to an FE report. It added that the Council would also consider two reports — on setting up Appellate Tribunals and decriminalisation of offences.
During the meeting, the Council, which is headed by the Union finance minister and comprises representatives of all states and UTs, may also take a decision on the GST levy on casinos, online gaming and horse racing, and rate rationalisation and cryptocurrencies, among other decisions.
Read More: RBI extends Market trading hours to pre-pandemic level; Check full list of new timings here
The last GST Council meeting, 47th GST Council meeting, was conducted on June 28 and 29 in Chandigarh. During the meeting, the apex body on GST had decided to accept the group of ministers’ interim reports on the correction of duty inversion and exemption. Pre-packaged and pre-labelled retail packs, including curd, lassi and butter milk, were brought under GST.
The GoM on GST levy on casinos, online gaming and horse racing will submit its report to the GST Council next week, Meghalaya Chief Minister Conrad Sangma said on Friday. Sangma-headed Group of Ministers (GoM) held its final meeting on the issue earlier this week and is understood to have recommended a GST levy of 28 per cent on online gaming, irrespective of whether it is a game of skill or chance.
However, in the absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount received from participants, the GoM has decided to refer all the suggestions to the GST Council for a final decision.
Read More: GST hike on online gaming may be deferred due to disagreements
Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals. The GoM in its earlier report submitted to the council in June had suggested a 28 per cent GST on the full value of the consideration, including the contest entry fee, paid by the player without making a distinction such as games of skill or chance. However, the council had asked the GoM to reconsider its report.
How Is Health Insurance Calculated?
Assume on a medical insurance policy worth Rs 10 lakh, you have to pay a premium of Rs 22,000. The GST will be imposed on the premium amount — 18 per cent of Rs 22,000. The total amount, including GST, you need to pay on the health insurance is Rs 25,960 (Rs 22,000 + Rs 3,960).
