NEW DELHI: The 55th GST Council meeting in Jaisalmer is likely to take a decision on tax rate on insurance premium, as per finance ministry sources. The GoM constituted on the issue had recommended complete waiver of GST on insurance for health insurance policies that provide a cover up to `5 lakh against the current rate of 18%. On all other policies, premium paid would continue to be taxed at 18%.
The Group of Ministers (GoM) constituted under Bihar deputy chief minister Samrat Choudhary has recommended complete waiver of GST on health insurance premium for senior citizens.
As far as life insurance policies are concerned, a majority of the panel members have favoured complete waiver of GST on term insurance premium. The Council on Saturday might agree on most of the proposals of the GoM on health and life insurance premium.
The council is likely to decide on the recommendations made by the GoM on rate rationalisation. The GoM has likely recommended changes in rates of 148 items. Some of those items may be taken up by the Council in its 55th meeting on Saturday. As reported earlier by this newspaper, the GoM had decided to lower rates on 20-litre packaged drinking water bottles, bicycles and exercise notebooks to 5% from the existing 18%. Some items in the 18% category like hair dryers, hair curlers, and beauty or make-up preparations that the GoM took up could be back in the 28% bracket.
Other issues that are likely to be discussed include lowering of GST on fee charged for food delivery e-commerce platforms. The current rate is 18%, and it is expected that the Council might decide in favour of lowering it to 5%. Sources said the Council might consider a retrospective amendment to blocked credit provision to overcome impact of SC judgment in Safari Retreats case. The Supreme Court in its Safari Retreats order has allowed input tax credit on construction of a building, if such a building qualifies as plants.