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Preparation to reduce GST rate on health and life insurance premium

by Aaryan Srivastav
September 27, 2024
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GST News: Insureds taking health and life insurance can get relief from expensive policies till December. There are preparations to reduce GST rates on health and life insurance policies in the GST Council meeting to be held in November. There will be a meeting of the Group of Ministers regarding this on October 19, in which it will be discussed in detail. On the other hand, changes in the GST slab related to other goods are also being considered. GST rate on many items can be reduced from 12 to five percent.

No consensus was reached in the last meeting

The Group of Ministers is considering two matters related to GST. One issue in this is the 18 percent GST on health and life insurance premiums, on which all opposition parties and even Union Road Transport Minister Nitin Gadkari had raised objections. In the last meeting of the Council, no consensus could be reached regarding reducing GST rates, after which the matter was referred to the Group of Ministers.

Now the 13-member group of ministers will now consider

The 13-member group of ministers formed to give a clear report in this matter will now consider. The convenor of the group is Bihar Deputy Chief Minister Samrat Chaudhary. It is possible that in the meeting on October 19, a consensus may be reached on charging five percent GST. The group will submit its report to the GST Council by October 30. After that the decision will be taken in the November meeting.

Efforts to improve GST rates also intensified

The Group of Ministers is also working towards rationalizing the GST rates, the meeting of which is to be held on October 20. In this meeting, the GST rate on many items can be reduced from 12 percent to five percent. There is a possibility that the GST rate on many important items including two-wheelers, bottled water can be reduced. The GST rate on about 100 such items can be reduced, while the GST rate on some items can also be increased.

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