The GST Council postponed its decision on reducing tax rates for life and health insurance premiums during its 55th meeting held on Saturday. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, agreed that further discussions were needed. A Group of Ministers (GoM) has already been tasked with conducting more discussions.
Bihar's Deputy Chief Minister Samrat Chaudhary, who leads the GoM on insurance, said one more meeting was needed to decide on the taxation of group, individual, and senior citizens' insurance policies. "Some members said more discussions are required. We (GoM) will meet in January again," Chaudhary told reporters.
In its November meeting, the GoM proposed exempting insurance premiums for term life insurance from GST, and it recommended exemption for premiums paid by senior citizens for health insurance. It also suggested exempting premiums for health insurance policies with coverage up to ₹5 lakh, but 18% GST would remain on policies with coverage exceeding ₹5 lakh.
The 55th GST Council meeting, taking place in Jaisalmer, Rajasthan, has brought together officials including Finance Minister Sitharaman, Minister of State for Finance Pankaj Chaudhary, Chief Ministers of several states, and deputy chief ministers from various States. The meeting also includes senior officials from the Finance Ministry and the Central Board of Indirect Taxes & Customs (CBIC).
While the official agenda for the meeting has not been made public, sources indicated that the rationalisation of GST rates on life and health insurance was a key item on the agenda, with the GoM report on the matter submitted to the GST Council for review.
(By arrangement with livemint.com)