54th GST Council Meeting: From Cess To Insurance, Here Are Some Pertinent Proposals In The Fray

The 54th Goods and Services Tax Council meeting is slated to happen today, that is, Monday, September 9. The meeting is expected to happen at 11:00 IST. These meetings are seen as a crucial gateway to reach into and address issues concerning one of the biggest tenets of the Indian taxation system.

Some of the key issues in focus are as follows:

GST On Insurance Premiums

This has been a long-standing demand from various stakeholders across the board, given the importance of this personal financial tool that insurance (health and life) is. The current GST levied on the said insurance premium stands at 18 per cent. Recently, a voice from the PM's own cabinet and FM's fellow minister Nitin Gadkari had reportedly made a similar demand.

GST Exemptions

Another issue is the matter of exemptions and cuts from the GST regime.

Exemption of certain crucial products and services from GST has been in the talks for a long time now. The recent budget's custom duty cuts on cancer drugs gave hope, as GST reductions for medications would benefit individuals battling acute ailments, including cancer.

In addition, exemptions for electricity metre services and modifications to assist the metal and real estate sectors are all said to be on the table of discourse.

GST Cess

Another major factor is the continuation of GST Cess. In fact, it is anticipated that the Council will clarify whether the GST compensation cess would continue. Reportedly, there are also ruminations over the possibility of eventually replacing Cess with a new set of taxes.

GST On Fuel

Another crucial aspect of this whole discourse is regarding bringing fuel, that is, petrol and diesel, under the GST regime. This continues to be a contentious issue, as the centre had earlier clarified, that the states would have to make their side clear. This, as the 'GSTisation' of Petrol and Diesel, would take away a source of revenue for the aforementioned state governments.

GST Council

The GST Council is meant to be a structure designed to tackle fiscal issues connected to the GDT regime in a federal and concurrent manner. As a result of which, the council, which is headed by the Union Finance Minister (Nirmala Sitharaman) and her deputy (MoS Pankaj Chaudhary), consists of ministers holding the finance portfolio from all the Indian states. This may include the state finance minister and their deputy.