Insurance Premiums May Drop If GST Council Decides To Reduce Taxes Says, FM

Finance Minister Nirmala Sitharaman said that the cost of insurance premiums for health and life insurance is likely to come down if the GST council recommends a reduction in the GST rate on health and life insurance premium policies. She mentioned in a written communication in the Lok Sabha that the GST council in its September 9 meeting had recommended to constitute a Group of Ministers (GoM) to holistically look into the issues about GST on life insurance and health insurance. The matter for review of GST rates on life and health insurance is pending before the GoM. If a recommendation for a reduction in the GST rate is made by the GST Council, the cost of insurance to the policyholder is expected to come down on account of the reduction of GST.

This step is taken in the interest of a policyholder who can benefit from the many benefits offered by health & life insurance policies and stay secured.

Source: Business Standard