GST Relief Proposed: Life and Health Insurance Could Be Exempt

The Centre has proposed exempting life and health insurance premiums from GST, aiming to alleviate financial burdens. Currently subject to 18% GST, the proposal is under review by a Group of Ministers (GoM) who will report to the GST Council. Approval could lead to significant changes.

The Centre has suggested a bold move to exempt life and health insurance premiums from the Goods and Services Tax (GST), Bihar Deputy Chief Minister Samrat Choudhary announced on Wednesday.

Currently, these premiums face an 18% GST. The Group of Ministers (GoM), led by Choudhary, will present its findings to the GST Council, highlighting viewpoints from various state finance ministers.

This initiative is part of broader GST reforms, aiming to categorize products into merit and standard rates of 5% and 18%, respectively. If accepted, these changes could provide financial relief to policyholders across the nation.

(With inputs from agencies.)