Goods and options tax obligation (GST) on time period life insurance coverage coverage prices, and prices paid by aged individuals for well being and wellness cowl are almost certainly to be spared from tax obligation, an authorities said on Saturday.
GoM Recommends GST Exemption
The GoM to choose the GST value on life and medical insurance coverage glad on Saturday and decided to excluded GST on prices spent for medical insurance coverage with insurance coverage protection of Rs 5 lakh for individuals in addition to aged individuals.
Final Decision Awaited from the GST Council
The determination hereof will definitely be taken by the GST Council Officials prices spent for medical insurance coverage safety of above Rs 5 lakh will definitely stay to herald 18 p.c GST.
Current GST Rate on Insurance Premiums
Currently, 18 p.c GST is imposed on life insurance coverage coverage prices spent for time period plans and family drifter plans.
GoM in Favor of Reducing Insurance Premium Rates
“GoM members are broadly on board for cutting my rates on insurance premiums. A final decision will be taken by the GST Council,” an authorities said.
Focus on Providing Relief to Senior Citizens
Bihar Deputy Chief Minister Samrat Chaudhary said, “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”.
GST Exemption Likely for Senior Citizens’ Insurance Premiums
However, there could possibly be no GST on insurance coverage coverage prices spent for aged individuals, whatever the insurance coverage protection amount.
GoM Set Up to Review Tax on Insurance Premiums
The GST Council in its convention final month had really decided to determine a 13-member GoM to choose tax obligation on well being and wellness and life insurance coverage coverage prices.
Report Expected by October-End
Choudhary is the convenor of the GoM. The panel consists of clergymen from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana.
The GoM has really been mandated to ship its report to the Council by October.
The following GST Council convention is almost certainly to happen in November 2024.
(With PTI inputs)
