The GST Council, which will hold its 48th meeting through video conferencing next week (December 17), is likely to discuss reducing the GST rate on health insurance from the current 18 per cent to 12 per cent now. Fe Report good. It added that the council would also consider two reports – on setting up an appellate tribunal and on decriminalization of offences.
During the meeting, the council, headed by the Union finance minister and comprising representatives from all states and union territories, may also take a decision on GST levy on casinos, online gaming and horse racing, and rate rationalization and cryptocurrencies. Decision.
The previous GST Council meeting, the 47th GST Council meeting, was held in Chandigarh on June 28 and 29. During the meeting, the apex body on GST had decided to accept the interim report of the Group of Ministers on reforms in duty inversion and exemptions. Pre-packaged and pre-labelled retail packs including curd, lassi and buttermilk were brought under GST.
Meghalaya Chief Minister Conrad Sangma on Friday said the GoM on GST levy on casinos, online gaming and horse racing will submit its report to the GST Council next week. The Group of Ministers (GoM) headed by Sangma held its last meeting on the issue earlier this week and is understood to have recommended levying 28 per cent GST on online gaming, be it a game of skill or chance .
However, in the absence of consensus on whether the tax should be levied only on the fees charged by the portal or on the entire consideration including bet amount received from participants, the GoM has decided to refer all suggestions to the GST Council. Final judgment.
Currently online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fee charged by online gaming portals. The GoM, in its previous report submitted to the Council in June, had suggested 28 per cent GST on the full value of the consideration, including competition entry fee, paid by the player without distinction as to games of skill or chance. However, the Council had asked the GoM to reconsider its report.
How is health insurance calculated?
Let’s say you have to pay a premium of Rs 22,000 for a medical insurance policy of Rs 10 lakh. GST will be levied on the premium amount – 18 per cent of Rs 22,000. The total amount including GST, you will have to pay on health insurance is Rs 25,960 (Rs 22,000 + Rs 3,960).
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