GST Council to Consider Reducing GST on Health Insurance Premiums

The 54th GST Council meeting scheduled for Monday is expected to address the GST rate on health insurance premiums. Sources suggest that significant relief might be on the way for individuals and senior citizens as the council considers lowering the GST rate.

Currently, health and life insurance premiums are taxed at an 18% GST rate. According to sources, the fitment committee, which includes central and state tax officials, discussed the potential benefits and drawbacks of reducing this rate on Sunday.

On Monday, a report detailing the GST on life, health, and reinsurance premiums, along with its revenue implications, will be presented to the GST Council. Following this, the Council will deliberate on whether to reduce the GST rate on health insurance premiums.

It is anticipated that the GST rate on health insurance premiums could be reduced from 18% to zero. However, the 18% rate on group health insurance premiums is expected to remain unchanged.

Additionally, there may be discussions about a new proposal to tax online payments over Rs 2,000, as currently, such payments through payment gateways are untaxed.

The GST Council, led by Finance Minister Nirmala Sitharaman and composed of state ministers, will review these issues.

Last month, after the first meeting of the reconstituted Group of Ministers on GST rate rationalisation, Bihar Deputy CM Samrat Chaudhary mentioned that there were proposals for rate changes in the health insurance sector under review.

West Bengal Finance Minister Chandrima Bhattacharya has also requested a reduction in the 18% GST rate on life and health insurance premiums, stating that the fitment committee is currently examining this request.

In the previous GST Council meeting on June 22, Finance Minister Nirmala Sitharaman announced several notable measures, including Aadhaar biometric integration and exemptions in railway services. (ANI)

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