New Delhi: The Group of Ministers (GoM) on GST rate rationalisation said on Saturday that health insurance premiums paid by senior citizens, and premiums paid on term life insurance will be exempted from GST, media reports said.
The Group of Ministers (GoM), which met to discuss GST rates on life and health insurance, has recommended exempting GST on health insurance premiums for coverage up to Rs 5 lakh for individuals, excluding senior citizens, reported news agency PTI.
However, the final decision will be made by the GST Council.
Premiums for health insurance policies with coverage exceeding Rs 5 lakh will continue to attract 18 percent GST.
Currently, a GST of 18 percent is levied on term life insurance premiums and family floater policies.
An official noted that GoM members are generally in favour of reducing tax rates on insurance premiums, but the final decision rests with the GST Council.
According to the report, Bihar Deputy Chief Minister Samrat Chaudhary said, Every GoM member wants to give relief to people, with special focus on senior citizens. We will submit a report to the council, and the final decision will be taken by the council.
Additionally, there may be a complete exemption from GST on insurance premiums paid by senior citizens, regardless of coverage limits.
The GST Council previously formed a 13-member GoM to assess tax rates on life and health insurance premiums, with Chaudhary as the convenor.
The GoM, which includes ministers from several states, has been tasked with submitting its report by the end of October.
