NEW DELHI: The Group of Ministers (GoM) on Saturday decided to exempt the Goods and Services Tax (GST) on term life insurance premiums and health cover premiums paid by senior citizens, according to news agency PTI citing official sources.
“GoM members are broadly on board for cutting rates on insurance premiums. A final decision will be taken by the GST Council,” an official said.
They also decided to waive off GST on health insurance premiums with coverage of up to Rs 5 lakh for individuals other than senior citizens.The GST Council will make the final decision on this matter.
Meanwhile, 18% GST will still be applicable on health insurance premiums for coverage exceeding Rs 5 lakh. Currently, 18 percent GST is also imposed on life insurance premiums for term policies and family floater policies.
“Every GoM member wants to give relief to people. Special focus be on senior citizens. We will submit a report to the council. A final decision will be taken by the council,” said Bihar deputy CM Samrat Chaudhary.
Last month, the GST Council decided to establish a 13-member GoM to determine the tax on health and life insurance premiums and to submit a report by October end. Choudhary serves as the convenor of the GoM, which includes ministers from various states such as Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana.