GST Council postpones decision on lowering GST health, life insurance

GST Council Meeting: The 55th meeting of the GST Council was held in Jaisalmer, in which Chief Ministers and Finance Ministers of many states participated under the chairmanship of Finance Minister Nirmala Sitharaman.

This meeting of the GST Council was considered special because in this the government would give a discount in GST rates on the premium of term life insurance, health insurance and health insurance of senior citizens, but this issue has been postponed for the time being in this meeting of the GST Council.

There was no consensus among the group of ministers

The GST Council on Saturday deferred the decision to reduce the tax rate on the premium of life and health insurance policies. Officials gave this information. In the 55th meeting of the GST Council, it was decided that some more technical aspects need to be resolved in this regard. The work was assigned to the GoM for further discussions in this regard.

This decision was taken by the council chaired by Union Finance Minister Nirmala Sitharaman and attended by her counterparts from the states. Bihar Deputy Chief Minister Samrat Choudhary said that another meeting of the GoM on insurance will be held to decide on taxation on group, individual, senior citizen policies.

This will be discussed again in January

Chaudhary told reporters, “Some members said that more discussion is needed. We (GoM) will meet again in January.” The Council has constituted a Group of Ministers (GoM) on Insurance under the chairmanship of Chaudhary, which in its meeting in November agreed to exempt the insurance premium of term life insurance policies from GST.

Also, it has been proposed to exempt the premium paid by senior citizens for health insurance cover from tax. It is also proposed to exempt from GST the premium paid for health insurance up to Rs 5 lakh for persons other than senior citizens. However, 18 percent GST will continue on the premium paid for policies with health insurance cover of more than Rs 5 lakh.

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