Meghalaya CM Conrad Sangma joins key discussions at 54th GST Council meeting

Meghalaya Chief Minister Conrad Sangma, along with other prominent figures, attended the 54th GST Council meeting chaired by Finance Minister Nirmala Sitharaman today. The meeting took place at Sushma Swaraj Bhawan and included key participants such as Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers from Goa and Meghalaya, and Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana.

Senior officers from the Union Government and various states were also present to discuss critical issues impacting the Goods and Services Tax (GST) framework. The Council is expected to focus on several key areas, including the taxation of insurance premiums, recommendations from the Group of Ministers (GoM) on rate rationalisation, and updates on online gaming regulations.

Sources indicated that the fitment committee, consisting of Centre and state tax officials, will present a detailed report on the GST levied on life, health, and reinsurance premiums, along with the revenue implications. The Council will decide on possible adjustments to reduce the tax burden on health insurance premiums, which currently stands at 18 percent, and may consider exemptions for certain groups, such as senior citizens.

The GST on health insurance premiums yielded Rs 8,262.94 crore in 2023-24, while health reinsurance premiums contributed Rs 1,484.36 crore. The taxation of insurance premiums has been a contentious issue in Parliament, with opposition members and Transport Minister Nitin Gadkari advocating for exemptions to ease the financial burden on policyholders.

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