Mon Sep 09 16:11:16 UTC 2024: ## GST Council to Review Insurance Premium Rates, Considers Fate of Luxury Cess

**New Delhi:** The GST Council will consider restructuring rates for health and life insurance premiums at its next meeting in November, Finance Minister Nirmala Sitharaman announced on Monday. A Group of Ministers (GoM) has been formed to study potential rate reductions for life and health insurance, highlighting the government’s focus on simplifying the tax structure.

Currently, health insurance, term insurance, and unit-linked insurance plans are subject to 18% GST, while endowment plans attract varying rates depending on the year of premium payment. The GoM, headed by Bihar Deputy Chief Minister Samrat Chaudhary, will submit its recommendations by the end of October.

In other developments, the Council unanimously agreed to form another GoM, led by Minister of State for Finance Pankaj Chaudhary, to assess the fate of the luxury and sin goods cess post its sunset date of March 31, 2026. The cess was implemented to repay the back-to-back loan taken to compensate states for revenue shortfalls during the COVID-19 pandemic. The Council will determine the usage and mechanism for the cess after its repayment deadline.

Meanwhile, the Council reported significant revenue gains from online gaming and casinos following the implementation of clarificatory laws imposing a 28% GST on these sectors. Revenue from online gaming surged by 412% to ₹6,909 crore in the six months following the law’s implementation, while casino revenue rose by 30% to ₹214 crore.

Finally, the Council recommended exempting import services by foreign airlines from their related entities outside India when conducted without consideration. This recommendation, intended to regularize past period instances, will not apply to other sectors.

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