GST Council Meeting: The 55th GST Council meeting took place in Jaisalmer, attended by Chief Ministers and Finance Ministers from various states, chaired by Finance Minister Nirmala Sitharaman. This GST Council meeting was deemed significant as the government planned to offer a reduction in GST rates on the premiums for term life insurance, health insurance, and senior citizen health insurance; however, this topic has been deferred for now in this GST Council meeting.
On Saturday, the GST Council postponed the decision to lower the tax rate on premiums for life and health insurance policies. Authorities provided this information. During the 55th GST Council meeting, it was concluded that additional technical elements must be addressed in this context. The task was given to the GoM for additional discussions on this matter.
A further meeting of the GoM on insurance will take place
This choice was made by the council led by Union Finance Minister Nirmala Sitharaman, with participation from her state counterparts. Bihar’s Deputy Chief Minister Samrat Choudhary announced that a further meeting of the GoM on insurance will take place to determine taxation for group, individual, and senior citizen policies.
The Council has formed a Group of Ministers (GoM) on Insurance, led by Chaudhary, which during its November meeting decided to exclude the insurance premium of term life insurance policies from GST.
GST to exclude from health insurance?
Additionally, there has been a suggestion to exclude the health insurance premiums paid by senior citizens from taxation. It is also suggested to exclude from GST the premium paid for health insurance for individuals, other than senior citizens, up to Rs 5 lakh. Nonetheless, an 18 percent GST will remain applicable on the premium for policies offering health insurance coverage exceeding Rs 5 lakh.