look news india
Why can health and life insurance become cheaper for the people of the country? Responding to one such question, Union Finance Minister Nirmala Sitharaman replied that if GST on health insurance and life insurance policies is reduced by the GST Council, then the cost of insurance i.e. insurance premium for the policy holder can reduce and Insurance costs can be reduced.
In a written reply in the Lok Sabha, he said the GST Council meeting held on September 9 had recommended the formation of a Group of Ministers (GoM) to consider reducing GST on health and life insurance. Both are under consideration before the GoM to reduce GST on insurance. According to sources, the Group of Ministers is believed to have agreed to reduce GST on term life insurance policies and health insurance for senior citizens. Apart from this, every person other than a senior citizen who has Rs. GST can be waived on health insurance up to Rs 5 lakh. However Rs. 18 percent GST will continue on health insurance above Rs 5 lakh.
This issue is expected to be discussed in the 21st meeting
This issue is likely to be discussed in the meeting of the GST Council, composed of state finance ministers, chaired by Sitharaman on December 21. There are indications that the GoM report on reducing GST on health and life insurance will be presented before the Council on the same day. In 2023-24, the Central and State Governments will get Rs. 1 lakh through GST on healthcare and life insurance policies. Revenue of Rs 16,398 crore. In which GST on LIC premium is Rs. 8,135 crore and from health insurance Rs. Revenue Rs 8,263 crore.