- 08 Feb 2025 06:18 PM
- New
GST on Health Insurance: Government Review Underway
Source: https://taxguru.in/goods-and-service-tax/gst-health-insurance-government-review-underway.html
Government of India acknowledged concerns regarding the 18% GST on health and life insurance policies. In response, the issue was discussed in the 54th GST Council meeting held on September 9, 2024. The Council decided to form a Group of Ministers (GoM) to review GST on life and health insurance comprehensively. The GoM, led by Bihar Deputy CM Samrat Chaudhary, was tasked with examining potential changes to tax rates. During the 55th GST Council meeting on December 21, 2024, the GoM requested additional time to finalize its recommendations. The Council agreed to extend the timeline, and as of now, no decision has been made regarding a reduction or removal of GST on health or term insurance policies. Any future changes will depend on the GoM’s recommendations and the Council’s approval.
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- 08 Feb 2025 06:12 PM
- New
Drilling borewells for agricultural purposes exempt from GST
Source: https://taxguru.in/goods-and-service-tax/drilling-borewells-agricultural-purposes-exempt-gst.html
Government of India has reaffirmed that drilling borewells for agricultural purposes remains exempt from GST. This exemption was carried over from the Service Tax regime, where such services were included in the negative list under Section 66D(d)(i) of the Finance Act, 1994. Under GST, the exemption continues through Notification No. 12/2017-CT(R), specifically under Sl. No. 54(a), covering services directly related to agricultural production. The Rajya Sabha inquiry sought clarity on guidelines for smooth implementation and concerns over potential misinterpretation leading to undue taxation. In response, the government clarified that any such guidelines or clarifications would be issued only upon recommendation by the GST Council, which includes representatives from both central and state governments. As of now, no such recommendation has been made.
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- 08 Feb 2025 06:49 PM
- New
GST on Insurance Premium: Status of GoM Recommendations
Source: https://taxguru.in/goods-and-service-tax/gst-insurance-premium-status-gom-recommendations.html
During the 55th GST Council meeting on December 21, 2024, in Jaisalmer, the Group of Ministers (GoM) on Life and Health Insurance requested additional time to finalize its recommendations regarding GST on insurance premiums. The issue concerns the impact of GST on social security and insurance penetration among the general public. The Council agreed to extend the timeline for the GoM to present its recommendations. No final decision has been made on the matter yet.
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- 08 Feb 2025 06:42 PM
GST on NBEMS Fees: Refund Process and Court Order
Source: https://taxguru.in/goods-and-service-tax/gst-nbems-fees-refund-process-court-order.html
National Board of Examinations in Medical Sciences (NBEMS) collected ₹39 crore as GST from Diplomate of National Board (DNB) candidates and ₹29 crore from Foreign Medical Graduate Examination (FMGE) candidates on course fee payments. Following a High Court order dated November 1, 2023, NBEMS has stopped levying GST on these fees. The refund process has begun, but detailed data on processed refunds and the breakdown of collected amounts are still being compiled. The Government has not initiated an enquiry on the issue.
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- 08 Feb 2025 06:39 PM
Tax Revenue from Tobacco Products (2016-2024)
Source: https://taxguru.in/goods-and-service-tax/tax-collected-tobacco-products-2016-2024.html
The share of tax revenue from tobacco products, including cigarettes and bidi, in India’s Gross Tax Revenue ranged from 1.27% in 2016-17 to a peak of 2.75% in 2019-20, before settling at 2.2% in 2023-24 (based on revised estimates). This includes GST, excise duty, compensation cess, and other levies. The Government does not earmark tobacco tax revenue for healthcare but uses it as part of the overall Gross Tax Revenue. In Budget 2024-25, ₹87,657 crore has been allocated to the Department of Health and Family Welfare, funded from general government receipts.
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- 08 Feb 2025 06:36 PM
GST reduction on health and life insurance premiums: Pending Decisions
In the 55th GST Council meeting held on December 21, 2024, in Jaisalmer, the Group of Ministers (GoM) on Life and Health Insurance requested additional time to finalize their recommendations regarding reducing GST on health and life insurance premiums. The GST Council approved this request, deferring any decisions on the matter until the GoM submits its finalized report. As of now, no changes in GST rates on these insurance premiums have been made.
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- 07 Feb 2025 06:10 PM
Big Brother watching: Optional GST invoice reconciliation to be made mandatory
NEW DELHI : An optional, online system to reconcile transaction details for availing GST credit may soon be made mandatory, according to two persons aware of the development.
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- 07 Feb 2025 06:17 PM
India’s taxation crisis: Can 1% bear such a large country’s burden?
With just about 1% of Indians expected to fund about a third of the government’s gross tax revenue next fiscal year, India has a taxation problem. It is not about high rates, but about who actually pays.
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- 03 Feb 2025 05:56 PM
Arvind Chari: This is a budget to optimize growth within constraints
The first full-year budget of India’s new National Democratic Alliance government, sworn in after the 2024 general election, was presented against the backdrop of a noticeable slowdown in economic growth over the last four quarters. I discussed the issue of whether this slowdown is cyclical or structural in a recent column for Mint, summarizing it as being an issue of expectations.
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- 03 Feb 2025 05:59 PM
‘We are putting money back in the hands of taxpayers’
With this budget we’re stating one thing very clearly, that credit availability is essential for people, for running their businesses, said the finance minister.
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