Comprehensive Analysis of Insurance Premiums to be Discussed at Upcoming GST Council Meeting: Samrat Choudhary
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Jaisalmer/New Delhi, Dec 21 (NationPress) The Group of Ministers (GoM) has formulated a comprehensive analysis of GST decisions concerning various insurance policies, and the exemption on premiums paid for these policies will be evaluated in the forthcoming GST Council meeting, as stated by Bihar Deputy Chief Minister Samrat Choudhary on Saturday.
Speaking to IANS after participating in the 55th GST Council meeting in Jaisalmer, Choudhary, who also oversees the Finance portfolio, mentioned that numerous GoM members advocated for convening another meeting to address the report on insurance policies.
"In the upcoming meeting, the GST exemption on premiums for group insurance, individual insurance, senior citizen insurance, and insurance for the disabled will be assessed," he remarked.
"Following this, the report will be detailed only after the next meeting. A total of 148 items will undergo review," stated Choudhary, who chairs the GoM.
When inquired about the timing for the next GST Council meeting, he confirmed that it is scheduled for January.
In the meantime, the 55th GST Council meeting, led by Finance Minister Nirmala Sitharaman, postponed the decision to lower rates on life and health insurance premiums.
Previously, in November, the GoM had proposed a GST exemption on premiums for term life insurance policies. It was also suggested to exempt the GST on premiums paid by senior citizens for health insurance coverage.
For individuals who are not senior citizens, a discount was recommended on health insurance premiums for policies up to Rs 5 lakh. However, the current 18% GST rate will still apply to policies with coverage exceeding Rs 5 lakh.
The GST Council will continue discussions on these recommendations during its next meeting, as some additional technical issues are still pending resolution.
There has been a persistent demand for a reduction in GST on life and health insurance premiums. It is anticipated that a decrease in GST on insurance premiums may alleviate the tax burden on both insurers and policyholders.
