INDUSTRY
GoM calls for exempting GST on premiums for term life and health insurance
- IBJ Bureau
- Oct 20, 2024
Goods and Services Tax (GST) on term life insurance premiums and premium paid by senior citizens for health cover is likely to be exempted from tax, an official has said.
The Group of Ministers (GoM) to decide on the GST rate on life and health insurance met on Saturday and decided to exempt GST on premiums paid for health insurance with coverage of up to Rs 5 lakh for individuals other than senior citizens.
The final decision in this regard will be taken by the GST Council.
Premium paid for health insurance coverage of above Rs 5 lakh will continue to attract 18 per cent GST.
Currently, 18 per cent GST is levied on life insurance premiums paid for term policies and family floater policies.
Bihar Deputy Chief Minister Samrat Chaudhary said: “Every GoM member wants to give relief to people. Special focus should be on senior citizens. We will submit a report to the council. A final decision will be taken by the council.”
There may be no GST on insurance premium paid for senior citizens, irrespective of the coverage amount.
The GST Council in its meeting last month had decided to set up a 13-member GoM to decide on tax on health and life insurance premiums.
Mr Choudhary is the convenor of the GoM. The panel includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana.
The GoM has been mandated to submit its report to the GST Council by October-end.
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