There is a big update on the GST Council Meeting. This meeting can be held on 21-22 December next month. It is believed that in this meeting, a big decision can be taken regarding GST on health insurance and term life insurance. According to sources, the GST Council may approve the GOM’s recommendation to reduce GST on term life insurance from 18 percent to zero next time. At the same time, GST can be reduced to zero on health insurance up to Rs 5 lakh. Along with this, whether or not to give relief from GST on co-lending loans is also likely to be discussed.
What happened at the last meeting?
In the meeting of the Group of Ministers (GoM) held in the month of October on the GST rate on the premium of health insurance, GST exemption was recommended for pure term life insurance covering family members and individuals. Apart from this, the panel proposed a tax exemption on all health insurance policies for senior citizens. In such a situation, it is expected that in the upcoming meeting of the GST Council, the final decision on GST on health insurance can be taken.
Union Minister Nitin Gadkari has also written a letter to the Finance Minister
Explain that till the implementation of GST, 15 percent tax was levied on term or life insurance and medical insurance. But after the GST was implemented, it increased by 3 percent, and GST was levied at the rate of 18 percent on these insurances. The 3 percent tax increase had a direct impact on the premium of insurance policies, and their prices increased. However, arguments are made in favor of GST by saying that there is a tax exemption facility.
Explain that Union Road and Transport Minister Nitin Gadkari has also asked the government to withdraw GST on insurance. He wrote a letter to Finance Minister Nirmala Sitharaman in this matter.
