Life Insurance and Health Insurance: In the meeting of the Group of Ministers formed by the GST Council, major decisions have been taken regarding GST on life and health insurance. These can be announced next month.
Life Insurance and Health Insurance: A big change is going to happen regarding GST on health insurance and life insurance. The Group of Ministers (GoM) formed in the last meeting of the GST Council has decided to give exemption in GST on term life insurance premium and health insurance premium for senior citizens. Apart from this, everyone can be exempted on health insurance premium up to Rs 5 lakh. However, 18 percent GST will continue to be levied on health insurance with coverage more than this. The final decision in this regard will be taken in the GST Council meeting to be held next month.
Senior citizens will not have to pay GST
A senior official said on Saturday that a meeting of the Group of Ministers was held to discuss the GST rate on life insurance and health insurance. During this, it has been decided to give GST exemption on the premium of health insurance with coverage up to Rs 5 lakh for persons other than senior citizens. Apart from this, 18 percent GST will continue to be levied on health insurance coverage of more than Rs 5 lakh. Currently, 18 per cent GST is levied on premiums paid for term life insurance and ‘family floater’ policies. He said that the members of the GoM agree to cut tax on insurance premium.
Group of Ministers will submit report to GST Council
Bihar Deputy Chief Minister Samrat Chaudhary said that every member of the Group of Ministers wants to give relief to the people. Special attention will be given to senior citizens. We will submit our report to the GST Council. No GST will be levied on paying premium for senior citizens. Irrespective of their coverage amount. The GST Council in its meeting last month constituted a 13-member Group of Ministers to take a decision on tax on insurance premium.
Samrat Chaudhary is its convener. It includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana. The Group of Ministers was directed to submit its report to the Council by the end of October.
