Why in news
A new Group of Ministers (GoM) has been formed to review the 18% GST levy on health and life insurance premiums.
The GoM has been given a strict deadline of 50 days to submit its recommendations.
The GoM will examine issues like reducing or abolishing the tax, exemptions for individuals and groups, and treatment of group insurance policies.
GST Rate Rationalization
The existing ministerial group on rate rationalization will be expanded to include more members to specifically review insurance taxation.
The panel will meet on September 23 to discuss its broader mandate.
New GoM: A new ministerial group will deliberate on the future of the GST Compensation Cess.
The cess has been extended till March 2026 to repay special borrowings.
The borrowings are expected to be repaid by the end of 2025 or January 2026.
The GoM will assess if the cess should continue in some form or be abolished.
Other Revisions
GST rate on three cancer drugs reduced from 12% to 5%.
GST rate on car seat covers increased from 18% to 28%.
GST rate on some extruded savory snacks reduced from 18% to 12%.
The GoM on real estate issues will examine factoring in land costs while assessing the value of construction services.
Other Issues
GST demands on universities for research funds were exempted.
GST demands on foreign airlines for import of services through branch offices were exempted.
Funds given for research to State-affiliated universities will be exempt from GST.
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