An official stated on Saturday that goods and services tax (GST) on term life insurance premiums and premiums paid by senior citizens for health coverage is expected to be exempt from tax. The Group of Ministers (GoM) met on Saturday to discuss the GST rate for life and health insurance and has decided to exempt GST on premiums for health insurance policies covering individuals up to Rs 5 lakh, excluding senior citizens. The GST Council will make the final decision on this matter. Officials will continue to apply an 18 percent GST on health insurance premiums exceeding Rs 5 lakh. Presently, an 18 percent GST is also charged on life insurance premiums for term and family floater policies. “Members of the GoM generally agree on reducing my rates for insurance premiums.” “The GST Council will make the final decision,” an official stated. Bihar’s Deputy Chief Minister, Samrat Chaudhary, mentioned, “All members of the GoM are eager to provide relief to the public.” Particular attention should be given to elderly individuals. We will provide a report to the council. The council will make a final decision. However, it is possible that there will be no GST on insurance premiums for senior citizens, regardless of the coverage amount. During its meeting last month, the GST Council decided to establish a 13-member Group of Ministers (GoM) to determine the tax on health and life insurance premiums. Choudhary is the head of the GoM. The committee consists of ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana. The Group of Ministers is required to present its report to the Council by the end of October. (You can now join our Economic Times WhatsApp channel)
