GST on Life Insurance and Health Insurance may be changed next month in GST Council meeting says a Report
Life Insurance and Health Insurance: There is going to be a big change 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 given rebate on health insurance premium up to Rs 5 lakh. However, health insurance with more coverage than this will continue to attract 18 percent GST. 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 time, it has been decided to provide GST exemption on health insurance premium 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 the premium paid for term life insurance and ‘family floater’ policies. He said that the GOM members have agreed to cut tax on insurance premiums.
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 provide 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 premium payment for senior citizens. Irrespective of their coverage amount. The GST Council, in its meeting last month, had constituted a 13-member Group of Ministers to take decisions regarding tax on insurance premium. Samrat Chaudhary is its coordinator. This 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.
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