{"id":132229,"date":"2024-09-16T19:31:33","date_gmt":"2024-09-16T14:01:33","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=132229"},"modified":"2024-09-17T14:22:17","modified_gmt":"2024-09-17T08:52:17","slug":"gst-council-forms-gom","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/gst-council-forms-gom","title":{"rendered":"GST Council Forms GoM"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The GST Council has set up a<\/span><b> 13-member Group of Ministers (GoM)<\/b><span style=\"font-weight: 400;\"> to suggest the GST rate on premiums for various health and life insurance products.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>What is the GST Council?<\/b><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-132201 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/09\/163-66e8322ae34d2.webp\" alt=\"GoM \" width=\"450\" height=\"254\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/09\/163-66e8322ae34d2.webp 1035w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/09\/163-66e8322ae34d2-300x170.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/09\/163-66e8322ae34d2-1024x579.webp 1024w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/09\/163-66e8322ae34d2-768x434.webp 768w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The GST Council is a constitutional body in India that oversees all aspects of the Goods and Services Tax (GST).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Chaired by the Union Finance Minister, it includes finance ministers from all Indian states.<\/span><\/li>\n<li><b>Key Responsibilities:<\/b>\n<ul>\n<li><b>Tax Rate Decisions: <\/b><span style=\"font-weight: 400;\">Determines GST rates for goods and services.<\/span><\/li>\n<li><b>Law Amendments:<\/b><span style=\"font-weight: 400;\"> Reconciles and enacts laws and regulations related to GST.<\/span><\/li>\n<li><b>Compliance: <\/b><span style=\"font-weight: 400;\">Sets deadlines for GST returns and compliance requirements.<\/span><\/li>\n<li><b>Special Provisions:<\/b><span style=\"font-weight: 400;\"> Considers special rates and provisions for different states.<\/span><\/li>\n<li><b>Uniformity: <\/b><span style=\"font-weight: 400;\">Ensures consistent tax rates across the country.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"nofollow noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>About GoM (2024)<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">It was established following the 54th GST Council meeting\u00a0 to examine the existing GST structure for life and health insurance.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It\u00a0 includes members from 12 other states too .<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM.<\/span><\/li>\n<li><b>Current Tax Rate: <\/b><span style=\"font-weight: 400;\">Currently, an 18% GST is levied on insurance premiums.<\/span><\/li>\n<li><b>Terms of Reference (ToR) for GoM<\/b>\n<ul>\n<li aria-level=\"2\"><b>Health\/Medical Insurance:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Assess GST rates for individual, group, family floater, and other types of health insurance.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Consider different categories such as senior citizens, the middle class, and people with mental illness.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Life Insurance:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Evaluate tax rates for term insurance, life insurance with investment plans, and re-insurance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Include both individual and group policies in the review.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>State Demands and Concerns<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Complete Exemption:<\/b><span style=\"font-weight: 400;\"> Opposition-ruled states, such as West Bengal, demanded the removal of GST on health and life insurance premiums.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lower Tax Rate:<\/b><span style=\"font-weight: 400;\"> Some states advocated for a reduced GST rate of 5%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unfair Taxation:<\/b><span style=\"font-weight: 400;\"> Transport Minister Nitin Gadkari argued against the imposition of GST on life insurance premiums, stating that <\/span><b>&#8220;levying GST on life insurance premium amounts to levying tax on the uncertainties of life.&#8221;<\/b><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Status of Revenue from Insurance GST<\/b><\/span><\/h2>\n<ul>\n<li><b>In 2023-24, the centre and states collected:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Rs 8,262.94 crore from GST on health insurance premiums.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Rs 1,484.36 crore from GST on health reinsurance premiums.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Response from Finance Minister:<\/b><span style=\"font-weight: 400;\"> The Finance Minister noted that 75% of GST collected goes to the states and urged opposition leaders to engage their state finance ministers to present proposals to the GST Council.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a 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products.<\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2084],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/132229"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=132229"}],"version-history":[{"count":4,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/132229\/revisions"}],"predecessor-version":[{"id":132347,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/132229\/revisions\/132347"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=132229"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=132229"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=132229"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=132229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}