GST Relief in Sight for Insurance Premiums

A group of ministers has recommended exempting GST on term life insurance premiums and health coverage premiums for senior citizens. They aim to provide relief, particularly focusing on older adults. A final decision will be made by the GST Council, with potential implementation by month-end.

The Goods and Services Tax (GST) on term life insurance premiums and premiums paid by senior citizens for health coverage could soon be exempted from taxation. This announcement came after a meeting held on Saturday, where discussions took place regarding potential changes to the GST policy.

The Group of Ministers (GoM), tasked with reviewing GST rates for life and health insurance, reached a consensus to exempt premiums on health insurance covering Rs 5 lakh for individuals other than senior citizens. Senior citizens might soon pay no GST on their insurance premiums, irrespective of the coverage amount. Current GST stands at 18% for most insurance policies.

In a statement, Bihar Deputy Chief Minister Samrat Chaudhary emphasized the urgency among GoM members to provide relief, notably to senior citizens. A comprehensive report will be presented to the GST Council, and a conclusive decision is anticipated within the upcoming weeks. The GoM is expected to submit its findings by the end of October.

(With inputs from agencies.)