{"id":309752,"date":"2024-09-10T17:55:05","date_gmt":"2024-09-10T12:25:05","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=309752"},"modified":"2024-09-10T17:55:05","modified_gmt":"2024-09-10T12:25:05","slug":"current-gst-rates-and-proposal-to-reduce-them","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/current-gst-rates-and-proposal-to-reduce-them\/","title":{"rendered":"Current GST rates and proposal to reduce them"},"content":{"rendered":"

Source:\u00a0<\/strong>This post on Current GST rates and proposal to reduce them<\/strong> has been created based on the article \u201cGoM set up to review 18% GST on health, life covers<\/a>\u201d,\u00a0<\/strong>published in The Hindu\u00a0<\/strong>on 10th<\/sup>\u00a0Sep 2024.<\/strong><\/p>\n

What is the news?<\/h2>\n

The GST Council recently initiated a potential review to address the increasing demand for a reduction in the 18% tax on health and life insurance premiums. They set a firm 50-day deadline for a new Group of Ministers (GoM) to assess and reconsider the tax rate.<\/p>\n

About the Current GST Rate on Health and Insurance Policies<\/h2>\n

The current Goods and Services Tax (GST) rate on health and life insurance premiums is set at 18%. There has been a growing demand for reducing the 18% tax rate on insurance premiums due to the financial burden it places on policyholders.<\/p>\n

GST Rate Changes and Exemptions<\/h2>\n

i) The GST Council approved a reduction in the GST rate for three cancer drugs- Trastuzumab Deruxtecan, Osimertinib, and Durvalumab- from 12% to 5%.<\/p>\n

ii) The tax on car seat covers was increased from 18% to 28% to align with motorcycle seat taxes.<\/p>\n

iii) The tax rate on some extruded savoury snacks was lowered from 18% to 12%, removing the distinction between these snacks and items like Namkeens and Bhujia.<\/p>\n

Proposals for reducing the GST on health and life insurance premiums<\/h2>\n

1. Reducing the GST Rate:<\/strong> \u00a0A key proposal is to lower the current 18% GST rate on health and life insurance premiums, which could make policies more affordable for consumers. This would alleviate the financial burden on policyholders.<\/p>\n

2. Complete Removal of GST on Insurance Premiums:<\/strong> There is also a suggestion to completely scrap the GST on insurance premiums. This move would significantly reduce the cost of purchasing insurance, especially important for life-saving policies like health insurance.<\/p>\n

3. Exemptions for Certain Categories:<\/strong> The Council is considering providing exemptions for certain categories of insurance policies, such as group insurance policies or policies targeted at specific demographic groups like senior citizens or low-income individuals.<\/p>\n

4. Differentiated Treatment for Group Insurance Policies:<\/strong> Special provisions may be introduced to treat group insurance policies differently, which could include lower tax rates or full exemption for certain types of group insurance plans.<\/p>\n

5. Revenue Impact Review:\u00a0<\/strong>Any reduction or removal of the GST on insurance premiums will undergo a detailed review of its impact on government revenues, ensuring that state finances are not adversely affected.<\/p>\n

Potential Impact of Reduction of GST:<\/strong> Reducing or removing GST on health and life insurance premiums could offer financial relief to policyholders and boost insurance coverage in the country.<\/p>\n

UPSC Syllabus: Indian economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:\u00a0This post on Current GST rates and proposal to reduce them has been created based on the article \u201cGoM set up to review 18% GST on health, life covers\u201d,\u00a0published in The Hindu\u00a0on 10th\u00a0Sep 2024. What is the news? The GST Council recently initiated a potential review to address the increasing demand for a reduction in… Continue reading Current GST rates and proposal to reduce them<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1],"tags":[11872,10498],"class_list":["post-309752","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-uncategorized","tag-9pm-daily-factly","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/309752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=309752"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/309752\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=309752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=309752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=309752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}