Finance Minister announces new GoM for health insurance at GST Council meeting

GST Council meeting: In the 54th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced the formation of a new Group of Ministers (GoM) dedicated to medical and health insurance. The announcement came during the meeting held at Sushma Swaraj Bhawan in New Delhi on Monday. 

The newly established GoM, led by Bihar's Deputy Chief Minister and including additional members for this specific task, is charged with reviewing and rationalising GST rates for medical and health insurance. 

Their findings are expected to be presented by the end of October 2024, with a final decision to be made at the Council’s November meeting.

Following the meeting, Sitharaman, accompanied by senior Finance Ministry officials, provided a detailed briefing to the press about the key decisions taken. 

She highlighted that the meeting addressed several pressing issues and outlined major decisions.

Rate Adjustments

 The GST Council decided to reduce the tax rate on cancer drugs from 12 per cent to 5 per cent, and on namkeen from 18 per cent to 12 per cent. These changes are aimed at making essential products more affordable.

New GoMs Formed

In addition to the GoM on medical and health insurance, a new GoM will be formed to address issues related to the compensation cess. These GoMs are tasked with reviewing current policies and suggesting necessary adjustments.

Sitharaman also highlighted that the meeting reviewed updates from the existing GoMs on rate rationalisation and real estate, and provided a status report on online gaming and casinos. The latter has shown a  412 per cent increase in revenue, reaching Rs 6,909 crore over the past six months.

The new GoM on medical and health insurance will have until the end of October to submit their report. The GST Council plans to review and finalise the recommendations based on this report in their November meeting. This step reflects the Council's ongoing commitment to addressing key issues and refining GST policies to better serve various sectors of the economy.