GST Council meeting to likely take place on December 21-22: GST on health, term insurance may be exempted

The 55th GST Council meeting may be scheduled on December 21-22 after the previous deliberation in September this year. This time the focus shall be on tax rationalisation in the insurance as the newly formed Group of Ministers (GoMs) were required to submit the report by the end of October 2024.

As per a PTI report, two ministerial panels set up by the GST Council were slated to meet on October 19 to discuss GST rate rationalisation and lowering 18 per cent tax rate on health and life insurance premiums.

This reportedly was the first meeting of the 13-member GoM, under Bihar Deputy Chief Minister Samrat Choudhary, established to suggest tax on health and life insurance premiums.

What to expect in 55th GST Council meeting?

As the GoM rate rationalisatio batted to exempt health insurance premium up to Rs 5 lakh sum assured value, this time around we may expect GST on term insurance as well as health insurance (5 lakh coverage) to be reduced to zero from 18 per cent earlier.

Further, there can also be deliberation on co-lending -whether or not it should be given relief from the GST purview.

Reportedly, in order to promote co-lending between banks as well as NBFCs, the SBI-led committee recommended relief from the 18 per cent GST. 

There is a view that the GoMs are unable to reach a consensus on  the issues facing the Committtee. Also, rate rationalisation is unlikely to be discussed in the December GST meeting,