GST rate cut on life-health insurance premium can be reduced to 5 Percent GST Council meeting

GST couricil meeting: GST can be cut on Life Insurance and Health Insurance. In the earliest GST Council meeting chaired by Finance Minister Nirmala Sitharaman, the GST rate on the premium of Life Insurance and Health Insurance can be reduced from 18 percent to 5 %. However, the benefit of input tax credit will continue to be given on it. A reduction in GST rate can reduce the treasury of the government.

Most of the members who have reviewed the tax rate by the GST Council are in favor of reducing the GST on the premium of life insurance and health insurance. However, they are not in favor of abolishing the GST on the premium of life insurance and health insurance. He believes that this will increase the cost with the abolition of GST completely. The insurance industry is in favor of decreasing from 18 per cent to 12 per cent. However, the final decision on this is to be taken by the GST Council.

IRDAI, Regulator of Insurance Sector, has also submitted its report on reducing GST on health and life insurance premiums. The group of ministers (GOM) will consider it in its meeting in the coming days. After this, the group of ministers will consider the GST Council to be considered in the meeting to be held in April or May in the month of April or May. The GST Council had earlier deferred the decision to give exemption in GST on health and life insurance premiums or to reduce it till further information from the regulator in its meeting on 21 December.

The opposition has been constantly demanding a cut in the GST rate on the premium of life insurance and health insurance. The permanent committee of Parliament has also recommended this. In the last three years, GST has been recovered by applying GST on the premium of health insurance and Rs 3274 crore has been recovered on the health reintegrated premium. Since the implementation of GST, there is 18 percent GST on health insurance.

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