GST Exemption Likely For Senior Citizens' Health Insurance And Term Life Premiums

The goods and services tax on premiums paid by senior citizens for health insurance and premiums paid by all for term life insurance may be exempted as most members of ministerial panel set up specifically to study this agreed in favour of extending such relief on Saturday. A group of ministers meeting was held to rationalise GST rate. Here is what the ministers said. The ministers meeting was held to rationalise GST rate. Here is what the ministers said. The issue is still going on. It will be too soon to say anything about it. There are many issues. It depends on product to product. Some things become expensive, some become cheap. I have told you how to make life easier for the poor. The people's party has always thought in that direction. We will continue to work in that direction. There are two group of ministers meeting were there. In the forenoon there was a discussion about the insurance, mainly health insurance. GST tax on health insurance. That was discussed and it was discussed earlier in the parliament, parliamentary committee, earlier GST council. So we discussed it and some positive discussion was there. I cannot say the proposal and decision, because it should be considered by the full GST council. So there is a very positive discussion. In favour of reducing the burden of the common people on health insurance. That is there. That is the only thing I can say. That will be a positive thing. Then about rate revision, many items are there, because since the inception of GST 70 years is already over. So many rates is to be looked at and revisited. Because some items, the rate should be reduced, because some rates are high. Some rates are very high, huge, high luxury items are there. Whether they are to be increased, some items. These are the items which are discussed. So that discussion is only part of the discussion is there, because again, these meetings will be there. For the insurance sector, GST on term life insurance premiums are likely to be exempted for all persons, including plans that consist of family members. In its 54th meeting held on September 9, the GST Council had broadly converged on the need to reduce the tax rate for health and life insurance premiums from 18%. But the specific proposal was referred to the GOM on life and health insurance premium for further discussion. The existing six-member GOM on rate rationalization was expanded to former 13-member GOM on life and health insurance premium, with the mandate to submit their report by October end. The GST Council will meet in November to take a final decision on the rate recommendations by both the GOMs.