Quick Summary
The GST Council is anticipated to meet in November, following state elections, to consider a Group of Ministers (GoM) recommendation to exempt health and term life insurance from GST. Currently taxed at 18%, this exemption, if approved, could provide significant relief to policyholders while reshaping the insurance landscape in India. GoM's Proposal: A Potential Game-Changer The GoMs suggestion aims to address affordability concerns and boost demand for health and term life insurance. This mov
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FAQ :
The GST Council is expected to meet in November, after the state elections, to consider the proposal.
Currently, health and term life insurance are taxed at 18% GST.
The proposal aims to address affordability concerns and increase demand for health and term life insurance.
While the exemption is expected to reduce costs, it depends on whether insurers pass the full savings to policyholders. The IRDAI chairman is optimistic this will happen, especially with Input Tax Credit adjustments.
The proposal is timely due to rising loss ratios in health insurance, which have led to price hikes, and increasing awareness of financial security.
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