New Delhi
The Goods and Services Tax (GST) on term life insurance premiums and health insurance premiums paid by senior citizens is expected to be exempted, according to an official announcement on Saturday.
A Group of Ministers (GoM) met to discuss the GST rates on life and health insurance and recommended exempting GST on health insurance premiums for coverage up to Rs 5 lakh for individuals, excluding senior citizens. However, health insurance coverage exceeding Rs 5 lakh will continue to incur an 18% GST. Currently, term life insurance premiums, including those for family floater policies, are also subject to an 18% GST.
An official noted that ‘GoM members are broadly on board for cutting rates on insurance premiums,’ with a final decision pending from the GST Council. Bihar Deputy Chief Minister Samrat Chaudhary emphasized the desire to provide relief to citizens, particularly senior citizens, and stated that the report will be submitted to the Council for final approval.
The GoM was established after the GST Council’s last meeting, which focused on tax implications for health and life insurance premiums. Chaudhary convenes the panel, which includes ministers from various states, and they are expected to submit their recommendations by the end of October.
