Finance Minister Nirmala Sitharaman said on September 9 that the GST Council will be seeking two key GoM status reports, one on rate rationalisation on medical insurance and another one on the road ahead for compensation cess.

  • The rate rationalisation GoM, headed by Bihar's Deputy CM, will next meet on September 23 and submit the final report. The next GST Council meeting in November will take up the recommendation of the new GoM on health and life insurance.

Earlier, Chandrima Bhattacharya, the Finance Minister of West Bengal had told ANI after the GST Council meeting that she has sought full exemption on GST on health insurance. “The issue of GST on Health insurance was raised by me. I said that the full exemption should be given...The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced."

The Council has decided to form a GoM which will give its report by the end of October, and then it will be decided in the next meeting, said finance minister of West Bengal. “They were agreeable to reduce but from 18% to 5%. Now, whether it will be exempted or it will be reduced to 5%," Bhattacharya added.

  • The issue of compensation cess beyond March 2026 will be decided by the GoM, Finance Minister said, while also pointing out that the GoM would take a call on the additional Rs 40,000 crore collected after adjusting for loans and interest. The compensation cess is likely to set off the loan and cess amount by January 2026, while the cess will continue till March 2026.
This is being updated