Council could heed to Gadkari’s call to exempt life insurance from GST
In a significant development, the Goods and Services Tax (GST) Council is likely to exempt life insurance from GST during its upcoming meeting on September 9.
The move, which has garnered widespread support, could lead to a revenue loss of Rs 200 crore annually, according to a senior government official.
"The government has been receiving representations from various stakeholders, seeking exemption for life insurance. The revenue loss is estimated to be around Rs 200 crore annually," the official told Moneycontrol.
The fitment committee of the GST Council has built a consensus to exempt life insurance from GST, the official confirmed, adding that the committee is still examining a proposal for health insurance.
The fitment committee consists of state and central revenue officials who review proposals to change GST rates. The committee's recommendations are then presented to the GST Council for consideration.
