GST Council Meeting 2024: The GST Council is going to meet today i.e. on 9th September. In this meeting, many important issues including GST on insurance premium are to be discussed today i.e. on Monday. The GST Council will hold its 54th meeting today.
Many significant decisions could potentially emerge from this meeting. The most discussed among these is the idea of imposing 18% GST on payment aggregators like BillDesk and CCAvenue for small online transactions up to Rs 2,000 using debit and credit cards.
Many experts suggest that GST on health insurance will either be abolished or it will be reduced. The common people will experience significant relief if we reduce or abolish the GST on insurance. That is, it will become cheaper for people to take insurance.
Many other issues including condition report on online gaming can also be discussed in the GST meeting. According to reports, the Fitment Committee comprising central and state tax officials will present a report related to GST and revenue levied on life, health and re-insurance premiums.
Today, the GST Council, headed by Union Finance Minister Nirmala Sitharaman, will decide whether the current 18% tax on health insurance will be reduced or exemption will be given for some categories like senior citizens. The issue of reduction in GST on life insurance premium will also be discussed in the meeting.
Will UPI payments be affected?
Unified Payments Interface has currently become the most popular means of digital payment. UPI transactions have seen a phenomenal 57% annual increase in FY 2024, especially for small transactions. Moreover, the total value of transactions exceeded Rs 131 billion.
The unique aspect is that small transactions made through UPI will remain unaffected. Even if GST is imposed, the additional amount will have to be paid only on payments made through debit cards, credit cards and net banking.
In August 2024, the government collected Rs 1,74,962 crore from GST. There has been an increase of 10% on an annual basis, there has been a 10% increase. Last year, August saw the collection of Rs 1,59,069 crore in GST revenue.