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The all-powerful GST Council, during its meeting on Monday, made several key decisions that include establishing a state panel to examine the future of the compensation cess, proposing the treatment of cess collections post-loan repayment, expanding the existing state panel on rate rationalisation to address issues related to life and health insurance, and providing relief to foreign
The GST Council, chaired by Finance Minister Nirmala Sitharaman, has submitted status reports on several pending matters, from the Group of Ministers (GoM), including rate rationalisation, real estate and online gaming.
Recommendations during 54th meeting of the GST Council held on 09.09.2024
Compensation cess continuation: The Council is expected to provide clarity on the continuation of the GST compensation cess. Sources suggest that the cess may extend “well into” 2025-26 (FY26). There will also be discussions on whether to eventually replace this cess with a tax or a new cess.
The Karnataka government on Friday urged Prime Minister Narendra Modi to advise the GST Council, which is set to meet on September nine, to abolish the 18 per cent tax on health insurance premiums.
The Goods and Services Tax (GST) Council in its meeting on Monday is likely to decide on four options regarding tax treatment of health insurance, with the cost to the exchequer potentially ranging from nearly Rs 650 crore to Rs 3,500 crore.
As the GST Council readies to discuss lower levies on health and life insurance on Monday, states are seen to be reluctant to agree to cut tax, fearing significant revenue loss, particularly on medical covers.
On the demand of states, especially of the Opposition-ruled states such as Karnataka, the upcoming GST Council on September 9 is likely to have a detailed discussion on the compensation cess collections so far, since the time of roll-out of GST.
The 54th GST Council is scheduled to meet on September 9 in New Delhi to deliberate upon a proposal to clarify that an 18% GST should be levied on payment aggregators whose platforms are used for digital payment transactions of less than ₹2,000 via debit cards, credit cards, and other payment methods, according to sources.
As the 54th GST Council Meeting approaches on September 9, 2024, in New Delhi, many are eagerly waiting to see what changes might come. Business leaders and industry groups are hoping that the meeting will address important issues and bring some clarity to tax rules.
