Nirmala Sitharaman , Union Finance Minister
The GoM on Life and Health Insurance is likely to be headed by Bihar Deputy Chief Minister, Samrat Choudhary and will explore full GST exemption on health and life insurance premiums for policies up to Rs 5 lakh, specifically benefiting senior citizens, said sources.
NEW DELHI: Finance Minister Nirmala Sitharaman will on Wednesday address a crucial meeting of a group of ministers of states as she makes a case for the sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
The Centre has proposed a 2-tier GST structure of 5 and 18 per cent, besides a 40 per cent special rate on a select few items to the group of minister (GoM) on GST rate rationalisation.
The proposal, which entails removing the current 12 and 28 per cent tax slabs, will be discussed at the 2-day meeting of the state ministerial panel on August 20 and 21 here in the national capital, sources said.
“The idea is to put forth the Centre’s view point behind the GST reform proposal. Although the Centre is not a member of the GoM, Union Finance Minister’s presence and her address will give the GoM a better understanding of the idea and thought process behind the Centre’s proposal,” a source told PTI.
Three key Groups of Ministers (GoMs) established by the GST Council, will meet during these three days to deliberate three major issues- GST rate rationalisation, taxes on life & health insurance and the compensation cess.
The GoM on Life and Health Insurance and the GoM on rate rationalisation are both likely to be headed by Bihar Deputy Chief Minister, Samrat Choudhary and will explore full GST exemption on health and life insurance premiums for policies up to Rs 5 lakh, specifically benefiting senior citizens, said sources.
Currently, the insurance premiums levy GST of 18 per cent.
Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the six-member GoM. The other members are Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, Kerala Finance Minister K N Balagopal.