Big GST change: Tax on health insurance premiums to be reduced – THESE people to benefit
ET NOW has learnt from sources that the council, in its meeting on October 7, may take a decision on reducing GST from 18 per cent to 12 per cent at least for senior citizens.
The Standing Committee on Finance has also recommended reducing GST on health insurance. This comes as insurance companies and health care providers have been asking for GST reduction for better Insurance penetration.
After Covid-19 pandemic, awareness for health insurance has gone up and data from insurance companies suggests that more than 20 per cent health insurance premium growth is continuing from last 2 years. As per the latest IRDAI data, growth in health insurance premium is 23 per cent as compared to last year, up to August 2023.
Health insurance premium this year up to August 2023 is Rs 44,374 crore versus Rs 39,161 crore in the same period last year. Health insurance makes up for 39 per cent market share in the non-life insurance sector.
