GST Council Meeting Today: The GST Council on Saturday deferred the decision to reduce the tax rate on the premium of life and health insurance policies. Officials gave this information. In the 55th meeting of the GST Council, it was decided that some more technical aspects need to be resolved in this regard.
GST Council Meeting Today: The GST Council meeting going on in Rajasthan has not been able to take a general decision on the reduction of tax rates on health insurance premiums. The GST Council on Saturday deferred the decision to reduce the tax rate on the premium of life and health insurance policies. Officials gave this information. It was decided in the 55th meeting of the GST Council that some more technical aspects need to be resolved in this regard. The work was assigned to the GoM for further discussions on this matter.
What did the Bihar Deputy CM say?
The decision was taken by the council chaired by Union Finance Minister Nirmala Sitharaman and attended by her counterparts from the states. Bihar Deputy Chief Minister Samrat Choudhary said that the GoM on insurance will have another meeting to decide on tax exemption on group, individual, senior citizen policies. “Some members said more discussion is needed. We (GoM) will meet again in January,” Samrat Choudhary said in a press statement.
GoM had recommended in November
The Council has constituted a Group of Ministers (GoM) on Insurance under the chairmanship of Chaudhary, which in its meeting in November agreed to exempt the insurance premium of term life insurance policies from GST. It has also been proposed to exempt the premium paid by senior citizens for health insurance cover from tax.
The wait of common people has increased
It is also proposed to exempt from GST the premium paid for health insurance up to Rs 5 lakh for persons other than senior citizens. However, 18 percent GST will continue on the premium paid for policies with health insurance cover of more than Rs 5 lakh.
