The GST Council is considering lowering GST on life and health insurance premiums, with possible exemptions and reductions to 5% on health insurance. Final decision pending.
INVC NEWS
New Delhi : The GST Council is expected to deliberate on lowering GST rates for life and health insurance premiums in its upcoming meeting. A proposal from the Department of Financial Services has suggested reducing tax rates, with the fitment panel offering four possible options for the Council’s consideration. These include a total exemption of GST on health insurance premiums and reducing the GST rate on health insurance services from the current 18% to 5%.
The potential fiscal impacts of these measures have been outlined, with estimated costs to the exchequer ranging between ₹650 crore and ₹3,500 crore, depending on the option selected. As for life insurance, the panel has recommended restricting GST exemptions to pure-term life insurance policies and related reinsurance services. The final decision will be made by the GST Council, balancing fiscal impact and consumer benefits.
