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GST Council Meeting: Many important decisions were taken in the 54th meeting of the Goods and Services Tax (GST) Council held on Monday. After the council meeting, Finance Minister Nirmala Sitharaman made many big announcements. The Finance Minister has said that there is a possibility of reduction in GST rate on snacks. Along with this, GST on cancer medicines has also been reduced. The Finance Minister said that the GST Council has reduced the GST rate on cancer medicines from 12 to 5 percent and the GST rate on snacks from 18 to 12 percent. Apart from this, the GST Council has also given a big relief to foreign airlines. At the same time, the GST rate on car seats has been increased from 18 percent to 28 percent.
What was the decision regarding life and health insurance?
Union Finance Minister Nirmala Sitharaman on Monday, while informing reporters about the decisions taken in the 54th meeting of the GST Council, said that the GST Council has decided to form a group of ministers to reduce tax rates on life and health insurance. Sitharaman said that new members will be included in the group of ministers to consider the GST rate on life and health insurance. The Finance Minister said that the group of ministers will submit its report by the end of October. After this, a decision will be taken in the next meeting in November.
Let us tell you that before the advent of GST, service tax was levied on insurance premium. When GST was implemented in 2017, service tax was included in the GST system. The issue of tax on insurance premium was raised during the discussion in Parliament. Opposition members demanded exemption of health and life insurance premium from GST. Union Minister Nitin Gadkari had also written a letter to Sitharaman on this issue.