GST Council Meeting : Union Finance Minister Nirmala Sitharaman said that the GST Council has decided to form a group of ministers to reduce the tax rate on life and health insurance. It has also been decided to reduce the Goods and Services Tax ( GST ) on cancer medicines and namkeen. Giving information about the decisions taken in the 54th meeting of the GST Council, she said that it has been decided to form a group of ministers to consider the matter of reduction in GST rates on life and health insurance.

The GST Council headed by Sitharaman comprises finance ministers of the states. The group of ministers will be headed by Bihar Deputy Chief Minister Samrat Choudhary. He is currently also the head of the group of ministers to rationalize the GST rate. Sitharaman said that new members will be included in the group of ministers to consider the GST rate on life and health insurance.

He said the group of ministers will submit its report by the end of October. The issue of taxation on insurance premiums has been raised in Parliament. Opposition members had demanded that health and life insurance premiums be kept free from GST. Road Transport and Highways Minister Nitin Gadkari had also written a letter to Sitharaman on this issue.

'75 percent of GST receipts go to the states'

Finance Minister Sitharaman, while responding to the discussion on the Finance Bill, had said that 75 percent of the GST receipts go to the states and the opposition members should ask their state finance ministers to bring a proposal to the GST Council. The GST Council, in its meeting held on Monday, decided to reduce the tax rate on cancer medicines from 12 percent to five percent and on namkeen from 18 percent to 12 percent.

Sitharaman said that a group of ministers has also been formed to consider the issue of compensation cess coming after March 2026. The council also discussed the status report of the GoM on the rationalization of rates and online gaming. The minister said that a committee of secretaries will be formed under the chairmanship of the Additional Secretary (Revenue) on IGST (Integrated GST). There is currently an imbalance in it. It will look into ways to recover the amount from the states.