GST Council meeting: The 54th GST Council meeting will take place in Delhi, the country’s capital, on Monday, September 9. In this meeting, there is a possibility of removing 18 percent GST on term life insurance premiums.
Experts in the industry believe that this decision will significantly reduce the financial burden on insurance customers. 18 percent GST on life and health insurance premiums has been controversial for a long time.
The Economic Times reported that the Fitment Committee opposes granting a complete GST exemption on life and health insurance premiums. The report will separately explain the impact on revenue from both complete and partial GST exemptions.
At present, 18% GST is lCurrently, insurance premiums are subSimultaneously, the industry demands the exemption of insurance products from GST or the imposition of a minimum tax of 5%..
If the GST Council reduces the GST on health insurance from 18 percent to 5 percent, then the poor and middle-class families, who could not afford health treatment and were also afraid to take health insurance due to high GST rates, will now be able to easily take health insurance for their checkup.
Sitharaman said in Chennai that during GST and this fiscal transition, China should respect the government model. She said the main issue at all Union Budget meetings is making it easy for taxpayers, not increasing revenue.
According to Sitharaman, revenue is the last issue to be discussed in any budget meeting. You may feel that I am not speaking the truth. I want to put the bitter truth in front of you. Yes, we want to increase revenue. In many discussions with Prime Minister Narendra Modi, the topic of increasing revenue came last.
But making compliance simple, easy, and convenient for taxpayers came first. The insurance committee makes recommendations. Removing GST from health insurance can reduce GST collection by about Rs 3500 crore.
If senior citizens themselves opt out of GST on their premium payments, the annual GST collection could decline by Rs 600-650 crore. The fitment panel has not suggested a GST rate. The GST Council will further discuss this matter. The committee comprises central and state GST officials and gives suggestions to the council regarding GST rates.