Recommendation from Group of Ministers awaited for GST exemption on health, life insurance
The Central government is awaiting the recommendation from the Group of Ministers (GoM) constituted by the Goods and Services Tax (GST) Council to take a final decision on the exemption of GST on health insurance and life insurance policies, Pankaj Chaudhary, Minister of State in the Ministry of Finance, said in the Lok Sabha earlier this week.
Responding to a question from Kollam MP N. K. Premachandran, the Minister explained that the issue of exempting or reducing GST on life and health insurance had been placed before the GST Council in its 54th meeting held on September 9 at New Delhi. After detailed deliberations, the council had recommended the setting up of a GoM to look into the issues pertaining to GST on life insurance and health insurance, and the first meeting of this GoM was held on October 19 at New Delhi.
“The recommendations of the GoM, when received, will be placed before the GST Council,’’ the Minister said.
GST rates and exemptions on all services, including health and life insurance, are prescribed based on the recommendations of the GST Council, a constitutional body made up of members from both the government of the Union, and of the States or Union Territories.
