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Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
The upcoming 55th GST Council meeting will review and review the current Goods and Services Tax (GST) structure on health and life insurance. The Group of Ministers (GoM) on Health Insurance submitted its recommendations to the tax officials of the state and central governments on December 16. The report will be reviewed by the GST Council during its meeting in Jaisalmer.
Key recommendations:
These proposals, if adopted, could significantly impact the structure of the GST on life and health insurance, potentially reducing premiums and increasing the accessibility of insurance products to more people.
Currently, 18 per cent GST is charged on the insurance premium. Sources indicated that the Council is likely to approve a proposal to exempt health and life insurance policies of up to Rs 5 lakh from GST. The goal is to reduce the tax burden on low and middle income groups. It is also likely to provide similar exemptions for senior policies.
The GST Council, headed by Union Finance Minister Nirmala Sitharaman and members from all states and union territories, is scheduled to meet in Jaisalmer on December 21.