Central government may remove GST from health insurance

New Delhi| The central government can give GST exemption in term life insurance policies and health insurance premiums of senior citizens. Most members of the state ministerial panel have supported cutting taxes to benefit the common man.

The Group of Ministers met on Saturday to decide on GST rates on life and health insurance. In which the premium paid for life insurance and health insurance by senior citizens can be made tax free. Apart from this, it was decided to exempt from GST the premium paid for health insurance with coverage up to Rs 5 lakh for other persons.

However, the final decision in this regard will be taken by the GST Council. At present, the premium paid for health insurance coverage of more than Rs 5 lakh will continue to attract 18 per cent GST. At present, 18 per cent GST is being levied on life insurance premiums paid for term policies and family floater policies. An official attending the meeting said that, the members of the GOM have widely agreed to cut rates on insurance premiums. The final decision will be taken by the GST Council.

Bihar Deputy Chief Minister Samrat Chaudhary, who attended the meeting, said that every member of the Group of Ministers wants to provide relief to the people. Special attention will be given to senior citizens. We will submit a report to the Council. However, no GST can be levied on the insurance premium paid for senior citizens, irrespective of the coverage amount.

The GST Council, at its meeting last month, had decided to set up a 13-member Group of Ministers to take a decision about tax on health and life insurance premiums. Samrat Chaudhary is the convenor of the Group of Ministers. This includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana. The Group of Ministers was instructed to submit its report to the Council by the end of October.