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GST on time period life insurance coverage premiums, and premium paid by senior residents for well being cowl is more likely to be exempted from tax
The discount of GST charges on life and medical insurance coverage was a key demand from the trade.
Goods and companies tax (GST) on time period life insurance coverage premiums, and premiums paid by senior residents for health cover are more likely to be exempted from tax, an official stated on Saturday.
GoM Recommends GST Exemption
The GoM to decide on the GST charge on life and medical health insurance met on Saturday and determined to exempt GST on premiums paid for medical health insurance with protection of Rs 5 lakh for people aside from senior residents.
Final Decision Awaited from the GST Council
The ultimate choice on this regard can be taken by the GST Council Officials premiums paid for medical health insurance protection of above Rs 5 lakh will proceed to draw 18 per cent GST.
Current GST Rate on Insurance Premiums
Currently, 18 per cent GST is levied on life insurance coverage premiums paid for time period insurance policies and household floater insurance policies.
GoM in Favor of Reducing Insurance Premium Rates
“GoM members are broadly on board for reducing my charges on insurance coverage premiums. A ultimate choice can be taken by the GST Council,” an official stated.
Focus on Providing Relief to Senior Citizens
Bihar Deputy Chief Minister Samrat Chaudhary stated, “Every GoM member needs to present aid to individuals. Special focus be on senior residents. We will submit a report back to the council. A ultimate choice can be taken by the council”.
GST Exemption Likely for Senior Citizens’ Insurance Premiums
However, there is perhaps no GST on insurance coverage premiums paid for senior residents, no matter the protection quantity.
GoM Set Up to Review Tax on Insurance Premiums
The GST Council in its assembly final month had determined to arrange a 13-member GoM to determine on tax on well being and life insurance coverage premiums.
Report Expected by October-End
Choudhary is the convenor of the GoM. The panel consists of 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 back to the Council by October.
The subsequent GST Council assembly is more likely to occur in November 2024.
(With PTI inputs)
