INSURANCE
GoM likely to decide on lowering GST on health, life insurance premiums at meeting on October 19
Sep-26-2024

A newly formed 13-member Group of Ministers (GoM) is likely to decide on lowering goods and services tax (GST) on health and life insurance premiums, at its first meeting to be held on October 19, 2024. Currently, 18 per cent GST is levied on insurance premiums and there have been demands to either exempt or reduce the tax. Recently, the GST Council in its meeting decided to set up a 13-member GoM to decide on tax on health and life insurance premiums. Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM.

The panel includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana. The GoM has been mandated to submit its report to the Council by October-end. The terms of reference (ToR) of the panel also includes suggesting tax rate of health/medical insurance, including individual, group, family floater, and other medical insurance for various categories like senior citizens, middle class, persons with mental illness.

The ToR also include suggest tax rates on life insurance, including term insurance, life insurance with investment plans, whether individual or group and re-insurance. In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.


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