New Delhi: The Insurance Regulatory and Development Authority (IRDAI) has once again asked the Finance Ministry to reduce the GST rates (GST rates on Insurance Premium) on the premiums for health and life insurance. If the Ministry of Finance puts this subject in the GST Council and the GST rates are reduced then the premium on this insurance schemes will be reduced. IRDA has told the Finance Ministry that the need for insurance schemes has increased due to the corona virus epidemic.
Sources told CNBC-TV18 that despite the face-to-face interaction that did not cause the epidemic, the business of the insurance sector has been better than expected. Buying insurance through the digital platform is making people comfortable. In view of the increasing importance of the insurance sector, the IRDA chairman has demanded to reduce GST rates on health and life insurance from the current 18 percent to 5 percent.
IRDA has also demanded to reduce GST rates earlier
However, this is not the first time that IRDA has proposed to the government to reduce GST rates on premium. IRDA has been demanding a reduction in GST rates for a long time. Earlier, Irda has demanded to reduce the GST rates on this insurance premium to 12 percent and once to 5 percent. Deciding on the basis of such a proposal will not be so easy. Any such proposal will also have to complete several other procedures before reaching the GST Council.
The process of reducing GST rates is not easy
For the approval of a proposal, first of all the recommendation and suggestions are to be given to the fitment committee nominated by the GST Council. Representatives of the state and the center are included in this committee. After receiving the proposal, this committee deliberates extensively and has a long debate on it. Only then a proposal is sent to the GST Council. The GST Council decides whether to approve or not on the basis of the recommendation of this committee.
GST Council meeting on 5 October
Let us know that the 42nd meeting of the GST Council to be held on September 19 has been postponed. Now this meeting will be held on October 5. Many important issues are likely to be discussed in this meeting, including the reduction of tax on two-wheelers. Sources said that the 42nd meeting of the council has been postponed, as the Parliament session will be going on during that time. The Center decided last month that the 41st and 42nd meetings of the GST Council would be held on 27 August and 19 September. However, the monsoon session of Parliament had not been decided by that time.
