Jaisalmer, Dec 21: The GST Council has decided to delay the decision regarding the reduction of tax rates on life and health insurance premiums, according to officials.
During its 55th meeting, led by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers, the Council concluded that additional technical details needed resolution and tasked the Group of Ministers (GoM) with further discussions.
Bihar Deputy Chief Minister Samrat Chaudhary mentioned that another GoM meeting is necessary to address the taxation of group, individual, and senior citizens’ insurance policies.
“Some members indicated that further discussions are essential. The GoM will convene again in January,” Chaudhary informed reporters.
A GoM established by the Council, under Chaudhary’s leadership, had previously agreed to exempt insurance premiums for term life insurance policies from GST in their November meeting.
Moreover, it is proposed that the premiums paid by senior citizens for health insurance be exempted from the tax. Additionally, premiums for health insurance coverage up to Rs 5 lakh purchased by individuals, excluding senior citizens, are also proposed for GST exemption.
However, an 18% GST will still apply to premiums for health insurance policies that provide coverage exceeding Rs 5 lakh. (Agencies)
