Decision on GST on health and medical insurance likely in November
A decision on the goods and services tax on insurance products is likely to be taken up in the next meeting of the GST Council in November. Discussions on rate rationalisation as well as compensation cess are also likely to be taken forward over the coming months.
The 54th meeting of the GST Council on Monday decided to set up a Group of Ministers that would look into the issue of GST on both life and health insurance. The GoM that would include members of the GoM on rate rationalisation headed by Bihar Deputy Chief Minister Samrat Choudhary along with members from other states would submit its report on the issue by end of October, Finance Minister Nirmala Sitharaman told reporters after the Council meeting.
“The GST Council, which will meet in November, will take up this report,” she said, noting that while the matter was discussed by the Council there remain several issues that require more analysis and discussion. These include issues around GST on group insurance taken by residents’ welfare associations and companies, the treatment of pure life insurance vis a vis term insurance, mental health-related insurance as well as GST on insurance for senior citizens. “There were a lot of discussions…should we reduce the rate or exempt insurance. What happens to group insurance? Is there a separate carve out required for senior citizens,” she noted.
