NEW DELHI: The Group of Ministers (GoM) on Saturday decided to exempt the Goods and Services Tax (GST) on term life insurance premiums and health cover premiums paid by senior citizens, according to news agency PTI citing official sources.
"GoM members are broadly on board for cutting rates on insurance premiums. A final decision will be taken by the GST Council," an official said.
They also decided to waive off GST on health insurance premiums with coverage of up to Rs 5 lakh for individuals other than senior citizens. The GST Council will make the final decision on this matter.
Meanwhile, 18% GST will still be applicable on health insurance premiums for coverage exceeding Rs 5 lakh. Currently, 18 percent GST is also imposed on life insurance premiums for term policies and family floater policies.
"Every GoM member wants to give relief to people. Special focus be on senior citizens. We will submit a report to the council. A final decision will be taken by the council," said Bihar deputy CM Samrat Chaudhary.
Last month, the GST Council decided to establish a 13-member GoM to determine the tax on health and life insurance premiums and to submit a report by October end. Choudhary serves as the convenor of the GoM, which includes ministers from various states such as Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana.
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less