INSURANCE
GoM recommendations on GST on life, health insurance to be placed before GST Council: Pankaj Chaudhary
Nov-26-2024

Minister of State for Finance Pankaj Chaudhary has said that recommendations of the Group of Ministers (GoM) looking into issues pertaining to GST on life and health insurance will be placed before the GST Council when received. The issue of exempting/reducing GST on life and health insurance was placed before the GST Council in its 54th meeting on September 9, 2024. 

After detailed deliberations, the Council recommended constituting a GoM to holistically look into issues pertaining to GST on life and health insurance. Accordingly, a GoM was constituted under the Chairmanship of Samrat Chaudhary, Deputy Chief Minister of Bihar. First meeting of the GoM was held on October 19, 2024 at New Delhi where issues of GST rate on health and life insurance policies were discussed. 

GST on health insurance services and pure term life insurance services is levied at standard rate of 18 per cent. GST rates and exemptions on all services (including health and life insurance) are prescribed on recommendations of the GST Council, a constitutional body comprising members from both the Union and State/UT governments.

Meanwhile, the revenue generated from GST on healthcare and life insurance services was Rs 8,263 crore and Rs 8,135 crore, respectively during fiscal 2023-24, as against Rs 7,638 crore and Rs 9,132 crore in the preceding financial year. 


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