New members to be added to Group of Ministers on rate rationalisation: Finance Minister Nirmala Sitharaman after GST Council meeting

After a meeting of the all-powerful GST Council on Monday, September 9, Finance Minister Nirmala Sitharaman said that new members will be inducted to the Group of Ministers to deliberate on pressing issues. Chaired by the Finance Minister, the GST Council comprises state ministers and is responsible for addressing any changes required in the indirect tax regime introduced in 2016. 

The GST Council received two status reports submitted by the Groups of Ministers, one each on the areas of rate rationalisation and real estate. 

The Finance Minister said that revenue has increased significantly in online gaming. 

She said that issues related to medical and health insurance premiums will be handled by the Group of Ministers on rate rationalisation. 

New members will be inducted to this group, which will be required to submit its report in October, the Union Minister added. 

Earlier, the GST Council was expected to discuss whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals like senior citizens. Also, deliberations were also expected with regard to a GST cut on life insurance premiums, an issue flagged in Parliament with opposition members demanding that health and life insurance premiums be exempt from GST.

The GST Council, which meets periodically to deliberate and decide on various issues related to GST, has been instrumental in deciding key issues related to the GST such as tax rates, exemptions, thresholds, and administrative procedures.

During its meetings, the GST Council makes decisions through a consensus-based approach with a majority of not less than three-fourths of the weighted votes of the members present.

In the previous GST Council meeting, held in June, a host of taxpayer-friendly measures were introduced, including waiver of interest and penalty for demand notices issued in the first three years of GST (2017-18, 2018-19 and 2019-20) if the full tax demanded is paid by March 31, 2025.