GST likely to be reduced on health and life insurance premiums: Report
The rate of goods and service tax (GST) paid on health and life insurance is likely to be reduced, CNBC-Awaaz reported on Thursday, August 8, citing people aware of the development. A proposal has been sent to the GST rationalisation committee, as per the news channel.
The proposal sent to the GST rationalisation committee entails a 5 per cent GST on health and life insurance premium payments; this is significantly lower than the 18 per cent GST applied currently, according to the sources quoted in the report. However, the committee is not in favour of the exemption of GST on premiums, as per the report.
HDFC Life Insurance, Life Insurance Corporation, SBI Life, and ICICI Prudential shares reacted well to the news report.
Mint could not independently verify this development.
The GST rate rationalisation committee is scheduled to meet on August 22, as per the report.
