West Bengal and Karnataka Ministers Discuss GST Rate Cuts on Insurance
The reconstituted Group of Ministers (GoM) on GST rate rationalisation met for the first time ahead of the crucial GST council meeting on September 9th.
Key Discussions
West Bengal Finance Minister Chandrima Bhattacharya requested a reduction in GST rates on life and health insurance premiums. She stated, “I have placed the request of reducing GST on life and health insurance. I have been told that the fitment committee is looking into it.”
Karnataka Minister Krishna Byre Gowda added, “We have discussed the issue of relaxation in GST rates on insurance; we have asked for more data on it.”
Current GST Slabs
On the topic of rate rationalisation or reducing the number of GST slabs, Bhattacharya mentioned, “No member of the rate rationalisation committee is in favour of changing or reducing the number of current slabs under GST.” Gowda echoed this sentiment, saying, “Why disturb something which is going on smoothly.”
Future Proposals
Sources from the GoM indicated that no decisions have been made on reducing slabs, cutting GST rates on different items, or reducing GST rates on life and health insurance premiums. Proposals have been made for reducing rates for insurance, hospitality, beverages, and the online gaming sector.
Reconstitution of GoM
The GoM for rate rationalisation was reconstituted in June 2024, following the formation of new governments at the center and in states like Bihar, Andhra Pradesh, and Telangana. Bihar Deputy Chief Minister Samrat Chaudhary was appointed as the convenor. Other members include Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, Rajasthan Medical and Health Services Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.
Pending Decisions
GST rate rationalisation has been pending for a long time, and it was anticipated that a decision would be made regarding the fitment of listed items under each GST slab. Products widely used by the public may be suggested for a transition from the 12% high-rate slab to the 5% slab.
Previous GST Council Meeting
In the last GST Council meeting held on June 22, Finance Minister Nirmala Sitharaman announced several significant measures, including Aadhaar biometric integration and exemptions in railway services.
Doubts Revealed
West Bengal -: West Bengal is a state in the eastern part of India. It is known for its rich culture, history, and the city of Kolkata.
Karnataka -: Karnataka is a state in the southern part of India. It is famous for its technology hub, Bengaluru, and its diverse culture.
Ministers -: Ministers are important people in the government who make decisions and help run the country or state. They are like leaders for different areas like finance, health, etc.
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy things or services. It helps the government get money to run the country.
Insurance -: Insurance is a way to protect yourself from big expenses. For example, if you have health insurance, it helps pay for your medical bills if you get sick.
Group of Ministers (GoM) -: The Group of Ministers (GoM) is a team of ministers who come together to discuss and make decisions on specific issues, like taxes.
GST council meeting -: The GST council meeting is a gathering where important people from the government talk about and decide on GST-related matters.
Chandrima Bhattacharya -: Chandrima Bhattacharya is the Finance Minister of West Bengal. She helps manage the state’s money and finances.
Krishna Byre Gowda -: Krishna Byre Gowda is a minister from Karnataka. He is involved in discussions about important issues like taxes.
Premiums -: Premiums are the money you pay regularly for insurance. For example, you pay a premium every month to keep your health insurance active.
Reconstituted -: Reconstituted means that the group was formed again with some changes. In this case, the GoM was reformed with new members in June 2024.
Bihar -: Bihar is a state in the eastern part of India. It has a rich history and is known for its ancient universities and cultural heritage.
Samrat Chaudhary -: Samrat Chaudhary is the Deputy Chief Minister of Bihar. He is an important leader in the state government.
Convenor -: A convenor is a person who organizes and leads meetings or discussions. In this case, Samrat Chaudhary is the convenor of the GoM.
