The Group of Ministers (GoM) set up to suggest changes in GST rates will meet on Saturday, October 19, to discuss the rationalization of taxes, particularly on health and life insurance premiums. The meeting will also explore proposals to modify existing tax slabs to improve the GST framework.
This will be the first meeting of the GoM formed to examine ways to lower the 18% GST rate currently applied to insurance premiums. Bihar’s Deputy Chief Minister, Samrat Choudhary, who heads the 13-member GoM, will lead discussions on potential reductions. The GoM’s mandate includes providing recommendations on the taxation of health and life insurance premiums to the GST Council.
The panel comprises ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana. It is expected to submit its final report to the GST Council by the end of October.
In parallel, another GoM led by Choudhary will meet to discuss the broader rationalization of GST rates. Key topics on the agenda include reducing the 12% tax slab, expanding the list of goods under the 5% slab, and lowering taxes on essential items like medical supplies, bicycles, and bottled water. The GoM will also deliberate on the possibility of merging the 12% and 18% GST slabs to simplify the tax structure.
The six-member GoM will evaluate ways to compensate for potential revenue losses resulting from reduced tax rates on common goods. Among the measures under consideration is an increase in GST on aerated water and beverages.
Currently, a GST rate of 18% applies to health and life insurance premiums. In the 2023-24 financial year, the central and state governments collected ₹8,262.94 crore from health insurance premiums and ₹1,484.36 crore from health reinsurance premiums.
