Life The premiums paid for insurance and health insurance by senior citizens can be exempted from tax. A senior official gave this information on Saturday. A Group of Ministers met on Saturday to decide on the GST rate on life and health insurance. During this, it was decided to exempt from GST the premium paid for health insurance with coverage up to Rs 5 lakh for persons other than senior citizens. The final decision in this regard will be taken by the GST Council.
How much does GST cost?
Premiums paid for health insurance coverage above Rs 5 lakh will continue to attract 18 per cent GST. Currently, 18 per cent GST is levied on life insurance premiums paid for term policies and ‘family floater’ policies. An official said, “GoM members broadly agreed to cut rates on insurance premiums. The final decision will be taken by the GST Council.” Bihar Deputy Chief Minister Samrat Chaudhary said, “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. The final decision will be taken by the council.”
No GST on insurance premium for senior citizens
However, no GST may be levied on insurance premiums paid for senior citizens, irrespective of the coverage amount. The GST Council, in its meeting last month, had decided to set up a 13-member Group of Ministers to decide on the tax on health and life insurance premiums. Chaudhary is the convenor of the Group of Ministers. It 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 directed to submit its report to the Council by the end of October.
