[ad_1]
The GST Council is expected to hold a discussion on Monday to address a variety of issues, including taxation of insurance premium, amnesty scheme, GoM’s suggestions on rate rationalization, and a status report on online gaming, as per a source.
The fitment committee which would comprise Centre and state tax officials will present a report on GST levied on life, health and reinsurance premiums and the revenue implications according to the source.
Chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, the GST council will examine if the tax burden on health insurance is to be reduced from the current 18 per cent or should consider exempting certain categories of individuals, like senior citizens.
There will also be deliberations regarding the GST cut on life insurance premium. In 2023-24, the Centre and states collected a total of Rs 8,262.94 crore through GST on health insurance premium and Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.
The issue of taxation on insurance premiums figured in Parliament discussions was faced with disagreement by the opposition members who demanded that health and life insurance premiums be exempt from GST.
Responding to the discussion on the Finance Bill, FM said 75 per cent of the GST collected is allocated to states and that the opposition members should seek their state finance ministers to bring the proposal at the GST Council.
West Bengal finance minister Chandrima Bhattacharya had raised the issue in the meeting of the Group of Ministers (GoM) on rate rationalization last month and the matter was referred to the fitment committee for further data analysis.
The GoM had, nevertheless opined against any tinkering of four-tier GST slab of 5, 12, 18, and 28 per cent currently. However, the panel had urged the fitment committee to look into any scope for rationalization of rates of goods and services.
Center and state tax officers will also present a “status report” with regard to online gaming, before the council. It would include GST revenue collection from the online gaming sector before and after October 1, 2023.
The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28 per cent tax and subsequently Central GST law was amended to make the taxation provision clear. The council had then decided that this taxation would be reviewed after six months of implementation, however according to sources, any change in the tax rates is unlikely.
Previously, many online gaming companies were not paying 28 per cent GST, arguing that there were differential tax rates for games of skill and games of chance. However, from October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28 per cent GST.
It was also mandatory for offshore gaming platforms to register with GST authorities and pay taxes, failing which the government would block those sites.
Besides, the Council is likely to be apprised about the ongoing drive against fake registration, the success of the drive and action taken against such entities. The total amount of suspected GST evasion would also be presented before the Council.
The drive, from August 16, 2024, to October 15, 2024, is aimed at detecting suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers. In the first drive between May 16, 2023 to July 15, 2023, against fake registration, 21,791 entities having GST registration were discovered to be non-existent. An amount of Rs 24,010 crore of suspected tax evasion was detected during the special drive.
In the June meeting, the council took a host of taxpayer-friendly measures, including waiver of interest and penalty for demand notices issued in the first three years of GST, 2017-18, 2018-19 and 2019-20, only if the full tax demanded is paid by March 31, 2025.
The council has fixed a monetary limit of 20 lakh for tax officers to file appeals before the GST Appellate Tribunal, the High Court and the Supreme Court to reduce litigation. It also recommended a reduction of the quantum of pre-deposit required to be paid by taxpayers for filing of appeals under goods and services tax.
[ad_2]
Source link
