AI-generated Summary, Reviewed by Patrika
The existing 18% GST on life insurance premiums may be abolished, and health insurance premiums may also become cheaper. The Group of Ministers (GOM) has agreed to consider relief on GST rates on insurance premiums. The GOM, comprising finance ministers of various states including Bihar, Rajasthan, Uttar Pradesh, Karnataka, and Kerala, has agreed to exempt life insurance premiums from GST and provide relief on health insurance premiums for senior citizens.
During the meeting, it was also decided that senior citizens would get additional benefits on health insurance premiums. The GOM will submit its report to the GST Council, which will take a final decision on the matter.
The meeting, led by Bihar Deputy Chief Minister and Finance Minister Samrat Chaudhary, also agreed that people above a certain age would get benefits on health insurance premiums. The GOM will submit its report to the GST Council, which will take a final decision on the matter.
It is worth noting that Union Minister Nitin Gadkari and other leaders had advocated for the abolition of GST on life insurance premiums, and the matter was also raised in the budget session of Parliament. The GST Council had discussed the issue in its previous meeting, and the Fitment Committee had briefed the Council on the revenue implications of exempting insurance premiums from GST.
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