GST Council Considers Tax Relief on Life and Health Insurance Premiums
In an upcoming 55th GST Council meeting in December, the GST Council may consider a significant proposal to reduce GST rates on life and health insurance premiums. The meeting will review recommendations by the Group of Ministers (GoM), led by Bihar’s Deputy CM, Samrat Chaudhary.
Key Highlights:
- Life Insurance:
Proposed GST exemption for pure term life insurance policies, including policies covering family members.
Potential revenue impact: Approximately ₹213 crore annually.
- Health Insurance:
Proposed GST exemption on all health insurance policies for senior citizens.
For non-senior citizens, the exemption may apply to policies with a cover up to ₹5 lakh.
Potential revenue impact: Around ₹2,100 crore annually.
This potential change could bring relief to policyholders, reducing premiums and making insurance more accessible.
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