At its 55th meeting, Samrat Chaudhary, the Deputy Chief Minister of Bihar, delayed the decision to lower the Goods and Services Tax rates on health and life insurance premiums.
The GoM had previously contemplated reducing GST to 5% on health insurance with a coverage of Rs 5 lakh and exempting senior citizen and term life insurance premiums from GST.
Before the idea is reintroduced to the Council, Chaudhary stated that the GoM will convene again in January.
A number of states voiced worries about possible income losses from the anticipated cut in GST rates, which prevented the GoM from reaching an agreement on insurance premiums.
In the past, the GOM contemplated removing the GST from senior citizen and term life insurance premiums.
Health insurance coverage over Rs 5 lakh would continue to be subject to the present premium of 18%.
After looking at the classification of ready-to-eat popcorn that has been seasoned with salt and spices, the Council decided that this kind of popcorn should be subject to a 5% GST unless it is pre-packaged and labelled, and a 12% GST if it is.
On the other hand, sugar-coated popcorn, such as caramel popcorn, would be considered sugar confectionery and be subject to an 18% GST.
In addition to exploring a GST exemption for health insurance coverage up to Rs 5 lakh for other individuals, they looked at providing an exemption for elderly folks’ health insurance premiums, regardless of coverage.
According to Chaudhary, there was no tabled report on the rate of 148 items. The potential inclusion of aviation turbine fuel (ATF) in the GST framework is a major issue of discussion, and the GoM on GST rate rationalization has suggested increasing taxes on luxury and sin goods.