- GST Council considering removing GST on premiums for life and health insurance
- Proposal could bring relief to policyholders and support insurance sector
- Current tax rate on premiums is 18%
- Proposal suggests exempting health insurance premiums up to Rs 5 lakh for individuals, excluding senior citizens
- Premiums for senior citizens could be entirely exempt from GST
- Exemption also being considered for life insurance premiums
- Final decision to be taken by GST Council
- Reduction in GST on insurance premiums could make insurance more affordable and increase penetration in the market
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
