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GST Council postpones decision to cut tax on life and health insurance

Sunny Madaan & Associates > Blog > GST > GST Council postpones decision to cut tax on life and health insurance
GST Council postpones decision to cut tax on life and health insurance

GST Council postpones decision to cut tax on life and health insurance

December 21, 2024by Pooja Gupta
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18% GST will continue on premiums paid for policies with health insurance cover of over ₹5 lakh.

The GST Council on Saturday postponed a decision on cutting tax rate on life and health insurance premiums, officials said.

Revenue Secretary Sanjay Malhotra attends a GST Council meeting with Union Finance Minister Nirmala Sitharaman at Vigyan Bhawan, in New Delhi. The Appointments Committee of the Cabinet has appointed Malhotra as the the new Governor of the Reserve Bank of India (RBI) for a three-year term beginning from December 12, 2024.(Shahbaz Khan/PTI)

The 55th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, decided that some more technicalities needed to be ironed out and tasked the GoM for further deliberations.

Bihar Deputy Chief Minister Samrat Chaudhary said one more meeting of the GoM on insurance is required to take a call on taxation of group, individual, senior citizens’ policies.

“Some members said more discussions required. We (GoM) will meet in January again,” Chaudhary told reporters.

A Group of Ministers (GOM) set up by the Council under Chaudhary, in its meeting in November had agreed on exempting insurance premiums paid for term life insurance policies from GST.

Also premium paid by senior citizens towards health insurance cover has been proposed to be exempted from the tax.

Besides, premiums paid by individuals, other than senior citizens, for health insurance with coverage of up to ₹5 lakh is proposed to be exempted from GST.

However, 18 per cent GST will continue on premiums paid for policies with health insurance cover of over ₹5 lakh.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience.
Educator and Digital Creator

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Categories Articles, GSTTags ca guru ji, ca guru ji classes, gst, GST Council, gst updates, income tax, income tax return, insurance premiums, ITR, life and health insurance, Nirmala Sitharaman, tax, tax rate, tax updates, updates

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience.
Educator and Digital Creator

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