By Bulletin Times 
GST Council Delays Decision on Insurance Premium Tax Cuts, Focuses on Further Deliberations
During its 55th meeting in Jaisalmer, Rajasthan, held on Saturday, the GST Council postponed significant decisions concerning the reduction of GST rates on life and health insurance premiums, as well as broader tax reforms intended to enhance revenue collection. The deferral follows requests from two ministerial panels for more time to thoroughly assess and finalize their proposals.
Bihar Deputy Chief Minister and Group of Ministers (GoM) convenor on insurance, Samrat Chaudhary, stated that the panel had not yet submitted its final recommendations to the Council. “Many ministers felt that further discussions are needed on group insurance, individual insurance, and senior citizens’ insurance. We will reconvene for another meeting to deliberate comprehensively,” Chaudhary explained.
Chaudhary, who also leads the GoM on GST rate rationalization, clarified that the panel’s proposals on adjusting GST rates to address anomalies and enhance revenue were not presented during this session.
A second insider revealed that the Council had opted to defer both the insurance premium tax rate cut and the GST rate restructuring proposals.
Key Highlights from the 55th GST Council Meeting:
Insurance Tax Cut Deferred: Discussions on lowering GST for life and health insurance premiums remain inconclusive, pending further deliberations by the GoM.
Simplified Registration for Small Firms: Finance Minister Nirmala Sitharaman announced the Council’s approval of a streamlined registration process for small businesses, addressing challenges related to verification and documentation.
Food Delivery GST Decision Postponed: No consensus was reached on GST rates for food delivery services via e-commerce platforms, with the matter deferred for future discussions.
Aviation Turbine Fuel (ATF) Exclusion Continues: States expressed reservations about bringing ATF under the GST framework, maintaining the status quo.
Fortified Rice GST Reduction: The tax rate on fortified rice kernels was reduced to 5%.
Gene Therapy GST Exemption: Gene therapy has been entirely exempted from GST.
Caramelized Popcorn Taxed at 18%: A consensus was reached to classify caramelized popcorn and other sugar-added popcorn varieties under the 18% GST bracket.
Finance Minister Sitharaman reiterated the Council’s commitment to balancing state and central interests while ensuring clarity in GST policies. The pending recommendations from the GoMs on insurance and tax rationalization are expected to be presented in subsequent meetings for final decisions.