GST Relief Proposed for Insurance and Essential Goods

A state ministerial panel is considering exempting GST from term life insurance policies and senior citizens' health insurance premiums. They also propose GST rate changes on essential and luxury goods. A final decision will be made by the GST Council, with revenue gains expected to cover potential losses.

A state ministerial panel is considering exempting term life insurance policies and senior citizens' health insurance premiums from GST. This move is aimed at benefiting the common man, according to an official statement released on Saturday.

During the meeting, the GoM proposed exempting GST on premiums paid for health insurance coverage up to Rs 5 lakh, except for senior citizens. Health insurance cover exceeding Rs 5 lakh, however, will continue to attract 18% GST. Simultaneously, the panel suggested GST rate changes on various goods, including packaged drinking water, bicycles, and luxury items. These recommendations will now go to the GST Council, headed by the Union Finance Minister.

Bihar Deputy Chief Minister Samrat Chaudhary, convenor of both panels, affirmed the focus on providing relief to the public, especially senior citizens. The panels aim to enable a revenue gain of Rs 22,000 crore for states and the Centre, offsetting potential losses from reduced insurance premiums. The GST Council is expected to make a final decision in its upcoming meeting.

(With inputs from agencies.)