Editor's Pick | Review of 18% GST on health, life covers by GoM

Amid increasing demands for a reduction in the 18% tax levied on health and life insurance premiums, the Goods and Services Tax (GST) Council on September 9 set a 50-day deadline for a newly formulated Group of Ministers to review the rate. Union Finance Minister Nirmala Sitharaman, who chairs the Council, said this issue was discussed with State Ministers, and questions arose about reducing or scrapping the levy, who should be exempted, and how group insurance policies would be treated, among other considerations. Ms. Sitharaman said this was why they decided there was a need for “a rigorous review,” with the GoM expected to look into the issues raised by the end of October, following which the GST Council would make a decision in its meeting in November. The Council received an update about the working of a ministerial group set up three years ago to rationalise various GST rates and slabs. It decided to expand the same panel to review the levy on insurance policies. The rate rationalisation panel is expected to meet and discuss its broader mandate on September 23. A new GoM will also deliberate the future of the GST Compensation Cess levied on items such as automobiles and demerit goods, which was expected to be in place till July 2022 to make up for the loss in the revenue of States during the first five years of GST. It was extended till March 2026 to compensate for special borrowings raised to compensate States, since cess collections reduced during the pandemic. Further, the Council approved a GST rate reduction for three cancer drugs — Trastuzumab Deruxtecan, Osimertinib and Durvalumab — from 12% to 5%. It also agreed to a hike in the levy on car seat covers to 28% from 18%, bringing them on a par with motorcycle seats. Some snacks also saw a tax rate cut from 18% to 12%. The Council also assessed the work done by a GoM on real estate issues, with the panel being directed to examine the issue of factoring in the cost of land while assessing the value of construction services in property transactions, since this cost could be higher or lower in various places. The Council sought to unravel some knotty issues such as the GST demands served on seven universities for research funds received, and about ₹39,000 crore of taxes sought from foreign airlines for import of services through their branch offices, by exempting both. The Hindu’s Editorial ​Taking TB seriously: On the BPaLM treatment regimen for drug-resistant tuberculosis Stolen vote: On a sledgehammer blow to democracy in France The Hindu’s Editorial What is the name of Manipur’s first Chief Minister? Mairembam Koireng Singh Rishang Keishing Yangmasho Shaiza Raj Kumar Ranbir Singh To know the answer and to play the full quiz, click here. [logo] Editor's Pick 10 September 2024 [The Hindu logo] [EP Logo] Editor's Pick 10 September 2024 In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [View in browser]( [More newsletters]( Review of 18% GST on health, life covers by GoM Amid increasing demands for a reduction in the 18% tax levied on health and life insurance premiums, the [Goods and Services Tax (GST) Council on September 9 set a 50-day deadline for a newly formulated Group of Ministers to review the rate.]( Union Finance Minister Nirmala Sitharaman, who chairs the Council, said this issue was discussed with State Ministers, and questions arose about reducing or scrapping the levy, who should be exempted, and how group insurance policies would be treated, among other considerations. Ms. Sitharaman said this was why they decided there was a need for “a rigorous review,” with the GoM expected to look into the issues raised by the end of October, following which the GST Council would make a decision in its meeting in November. The Council received an update about the working of a ministerial group set up three years ago to rationalise various GST rates and slabs. It decided to expand the same panel to review the levy on insurance policies. The rate rationalisation panel is expected to meet and discuss its broader mandate on September 23. A new GoM will also deliberate the future of the GST Compensation Cess levied on items such as automobiles and demerit goods, which was expected to be in place till July 2022 to make up for the loss in the revenue of States during the first five years of GST. It was extended till March 2026 to compensate for special borrowings raised to compensate States, since cess collections reduced during the pandemic. Further, the Council approved a GST rate reduction for three cancer drugs — Trastuzumab Deruxtecan, Osimertinib and Durvalumab — from 12% to 5%. It also agreed to a hike in the levy on car seat covers to 28% from 18%, bringing them on a par with motorcycle seats. Some snacks also saw a tax rate cut from 18% to 12%. The Council also assessed the work done by a GoM on real estate issues, with the panel being directed to examine the issue of factoring in the cost of land while assessing the value of construction services in property transactions, since this cost could be higher or lower in various places. The Council sought to unravel some knotty issues such as the GST demands served on seven universities for research funds received, and about ₹39,000 crore of taxes sought from foreign airlines for import of services through their branch offices, by exempting both. The Hindu’s Editorial [Arrow][​Taking TB seriously: On the BPaLM treatment regimen for drug-resistant tuberculosis]( [Arrow][Stolen vote: On a sledgehammer blow to democracy in France]( The Hindu’s Editorial What is the name of Manipur’s first Chief Minister? - Mairembam Koireng Singh - Rishang Keishing - Yangmasho Shaiza - Raj Kumar Ranbir Singh To know the answer and to play the full quiz,[ click here](. 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