GST Council Forms GoM to Review Tax Rate on Health, Life Insurance

The GST Council has constituted a 13-member Group of Ministers (GoM) to review and suggest GST rates on health and life insurance premiums. The report is due by October 30, 2024, and Bihar Deputy CM Samrat Choudhary leads the group. The decision was made during the 54th GST Council meeting on September 9, 2024. A final decision will be made in November based on the GoM’s recommendations.

Key Objectives of the GoM

Review GST rates on health and life insurance, including premiums for individual, group, and family plans.

Examine tax rates on specialized categories such as senior citizens and those with mental illness.

Review rates on term insurance, life insurance with investment plans, and reinsurance.

Current GST on Insurance

Currently, a GST rate of 18% applies to health and life insurance premiums. Some opposition-ruled states like West Bengal have called for complete exemption, while others advocate reducing the rate to 5%.

Revenue from GST on Insurance

In 2023-24, Rs 8,262.94 crore was collected from GST on health insurance premiums, and Rs 1,484.36 crore from health reinsurance premiums. Transport Minister Nitin Gadkari also voiced concerns, stating that taxing insurance premiums equates to taxing life’s uncertainties.

Next Steps

The GST Council will make a final decision on the tax structure during its November meeting, after receiving the GoM’s report.

Piyush Shukla

Recent Posts

RBI Cancels Paytm Payments Bank Licence, Cites Regulatory Non-Compliance

The Reserve Bank of India (RBI) has cancelled the banking licence of the Paytm Payments…

12 hours ago

Do You Know Which was the First Website on the Internet?

Today, the internet is an important part of our daily life. We use it to…

14 hours ago

Dabur Names Herjit S Bhalla as India Business CEO, Effective April 23, 2026

Dabur has appointed Mr. Herjit S Bhalla as the Chief Executive Officer (CEO) of Its…

16 hours ago

India Loses Top Spot in Bangladesh Corn Market Amid Rising Ethanol Demand

Brazil has overtaken India as the leading exporter of the corn (maize) to Bangladesh. This…

16 hours ago

Which Indian City is known as the City of Locks?

Aligarh is a well-known city in Uttar Pradesh. It is popularly called the "City of…

16 hours ago

Satellite Study Places Mumbai and Secunderabad Landfills in Global Methane Top 25

The recent satellite based global study has revealed that the landfill sites in the Secunderabad…

17 hours ago