New Delhi: The central government is likely to waive off Goods and Services Tax (GST) on premiums paid by senior citizens for health insurance, irrespective of the coverage. In addition, GST on term life insurance premiums is also likely to be exempted for all customers, including on plans that consist of family members.
Apart from these benefits, health insurance cover up to Rs. 5 lakh will be exempted from GST for all other people. The existing rate of 18 percent GST will be charged for health insurance coverage beyond Rs. 5 lakh.
These initiatives were discussed during the meeting of the Group of Ministers (GoM). Bihar Deputy Chief Minister, Samrat Choudhary, who is the convenor of the GoM on insurance, stated that the focus of the group is on giving relief on premiums to senior citizens and other people as well. Work is also being done to reduce the GST rate from 18 percent. The final decision on these initiatives will be taken by the GST Council.
