• Notification Date: 10-12-2022
• Notification No: N/A

Council Considering Lowering GST on Health Insurance

The Goods and Services Tax (GST) Council is likely to consider two reports in the upcoming 48th meeting. One of the reports would be on setting up Appellate Tribunals and the other on decriminalizing offenses. The Union Finance Minister Nirmala Sitharaman will chair the virtual Council meeting on 17th December 2022. 

According to the reports,  

1) The Council might also consider reducing the GST on health insurance to 12% from the present rate of 18%. 

2) The Group of Ministers (GoM) formed for finalising the GST levy on online gaming, casinos, and horse racing has not submitted the report yet. It is still uncertain whether the Council will review the GST rates on these items in the meeting. However, if the Grupp f Ministers submits the report, the Council will consider these items. 

3) Another proposal has been made for GST on cryptocurrencies. But it may not be discussed in this meeting. There has been no clarity on this issue till date. 

4) The concept of cryptocurrencies requires more discussion due to its complexity. 

The GoM is in favour of levying a 28% GST on online gaming, casinos and horse racing. However, there is no consensus among GoM on whether to charge tax only on the fees or the total consideration. Besides, a few states are planning to request to extend the GST compensation period ended recently in June 2022, in this Council meeting. We need to wait till 17th December 2022 to get an update on these issues.