GST Council postpones decision on reducing tax for life, health insurance premiums

The GST Council has postponed its decision on reducing tax rates for life and health insurance premiums. With further deliberations planned for January, key proposals include exemptions on term life insurance and premiums for senior citizens.

On Sunday, the GST Council, in its 55th meeting chaired by Union Finance Minister Nirmala Sitharaman, deferred the decision to cut taxes on life and health insurance premiums. Further technical consultations were needed before any changes could be implemented, the commission said.

Group of ministers to meet again for further discussions

Bihar Deputy Chief Minister Samrat Chaudhary, who headed the Group of Ministers (GoM) tasked with considering the issue, said a fresh meeting was needed to resolve the outstanding issues. The GoM will meet again in January to decide on taxes on various insurance policies, including those of groups, individuals, and senior citizens.

Proposals on GST exemptions for insurance premiums

In a meeting in November, the GoM had proposed important tax exemptions, including waiving GST on term life insurance premiums and senior citizens premiums on health insurance also proposed GST on health insurance premiums up to Rs 5 lakh for individuals.

Also read | PF claims via e-wallets: EPFO to enable ATM withdrawals for provident fund access | Know how