GST Council Eyes Health & Life Insurance Rate Revamp

The GST Council is set to discuss the rationalisation of tax rates on health and life insurance at an upcoming meeting. Recently, calls for reducing these rates have intensified, led by leaders from opposition states. The decision follows a report by a Group of Ministers.

The GST Council is preparing to address the rationalisation of tax rates on health and life insurance products at its upcoming meeting in Jaisalmer. According to sources, the Group of Ministers, headed by Bihar Minister Samrat Chaudhary, has already submitted a report on this matter to the Council.

Initially tasked with examining GST rates on medical insurance, the Group of Ministers aims to inform the Council for a potential review. Currently, both life and medical insurance premiums incur a GST rate of 18 per cent, prompting calls from several opposition-led states for rate reductions. West Bengal Chief Minister Mamata Banerjee is among those advocating for change.

The GST Council, a constitutional body comprising representatives from the Centre, States, and Union Territories, evaluates rates and exemptions. In its 54th meeting in New Delhi last September, the Council decided to form a Group of Ministers to explore these issues comprehensively. Meanwhile, opposition leaders, including Congress's Rahul Gandhi, have protested outside Parliament, pushing for the rollback of GST on insurance products.

(With inputs from agencies.)