Council defers decision on GST relief for life, health insurance premiums
The GST Council deferred a decision to exempt and reduce the Goods and Services Tax on health and life insurance premiums during its meeting on December 21 since the ministers' panel requires more time to arrive at a consensus.
A Group of Ministers (GoM) was said to have recommended exempting GST on health insurance for senior citizens and term life insurance as well as lowering the indirect tax rate to 5 percent on health insurance with a coverage of Rs 5 lakh.
Presently, premiums paid on life and medical insurance largely attract a GST rate of 18 percent.
"The GoM on health insurance related GST work requires more time as IRDAI's inputs are awaited. GoM on insurance has discussed relief on health, life insurance in detail. But after getting IRDAI's inputs the GoM will finalise report," Finance Minister Nirmala Sitharaman said during a briefing after the GST Council meeting.
