GST Council's 54th Meeting: Key Updates on Insurance Premiums and Education Sector Relief

A major update has emerged from the 54th GST Council meeting. Sources said that there was a 'broad consensus' on reducing insurance premiums. However, sources said that the final decision would be taken in the next meeting. This comes hours after the Uttarakhand Finance Minister announced the deferment of the decision to impose GST on online transactions of less than Rs 2,000.

There was speculation of a reduction in GST on insurance in the same meeting, as after the first meeting of the reconstituted Group of Ministers on GST to rationalise these rates last month, Bihar Deputy Chief Minister and Convenor of the Rates GST GoM Samrat Choudhary had said that proposals have come for changes in rates in the health insurance sector, and it is being reviewed.

West Bengal Finance Minister Chandrima Bhattacharya had said that she has submitted a request to reduce the 18 percent GST rate on life and health insurance premiums. Bhattacharya said, "I have requested to reduce GST on life and health insurance. I have been told that the fitment committee is considering it."

According to the news received from sources, the council has decided to waive GST on research and grants. Many educational institutions including IIT Delhi Punjab University are expected to benefit from this decision. The GST department had sent a notice of about 210 crores to 7 universities including IIT Delhi and Punjab University by imposing 18 percent GST. After this decision of the council, these institutions will get relief.

The matter of 18 percent GST on the income of payment aggregators on transactions less than Rs 2000 was considered important. Now the Finance Minister of Uttarakhand has revealed that the decision to implement it has been postponed. He said that now the matter has been sent back to the GST Fitment Committee for further review.