Quick Summary
The GST Council could lower the rates of health and life insurance premiums at its meeting later this month if it accepts a recommendation made by a rate rationalisation committee, officials said on Thursday. Though sources suggested the panel is headed to introduce a uniform 5 % rate on these premiums, down from an existing 18%. But it was against scrapping the tax altogether since that would have a bearing on revenue for both the Centre and states. In 2017, when the tax regime replaced se
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FAQ :
A GST panel is likely to consider a recommendation to lower the rates of health and life insurance premiums.
Sources suggest the panel is considering a uniform rate of 5% on these premiums.
The current GST rate on health and life insurance premiums is 18%.
The reduction is being considered due to mounting pressure and to address increased premium costs for policyholders since the 18% GST was introduced in 2017.
No, sources suggest the panel is against scrapping the tax altogether due to its impact on revenue for the Centre and states.
A parliamentary committee has suggested rationalising GST on insurance, particularly health and term insurance, and proposed that the RBI issue 'on-tap' bonds for the industry's capital needs.
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