54th GST Council Meeting today: Check what will be on the agenda

The news agency, quoting 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.

The 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% or exempt certain categories of individuals, like senior citizens.

The deliberations will also happen with regard to the goods and services tax (GST) cut on life insurance premiums.

The issue of taxation on insurance premiums 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.

Finance Minister Nirmala Sitharaman, in her reply to discussion on the Finance Bill, said 75% of the GST collected goes to states.

West Bengal Finance Minister Chandrima Bhattacharya had raised the issue in the meeting of the Group of Ministers (GoM) on rate rationalisation last month, and the matter was referred to the fitment committee for further data analysis.

The GoM had opined against any tinkering of a four-tier GST slab of 5, 12, 18, and 28% for the time being. The panel, however, had asked the fitment committee to look into any scope for rationalisation of rates of goods and services.

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 October 1, 2023.

From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28% GST. Prior to that, many online gaming companies were not paying 28% GST, arguing that there were differential tax rates for games of skill and games of chance.

The GST council in its meeting in August 2023, clarified that online gaming platforms were required to pay 28% tax, and subsequently, the Central GST law was amended to make the taxation provision clear.

The council had then decided that the taxation on the online gaming sector would be reviewed after six months of its implementation.

The reports also 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.