The Group of Ministers (GoM) has been set up by the GST Council under Union Finance Minister Nirmala Sitharaman to review the current Goods and Services Tax (GST) on life and health insurance premiums. The move comes in response to increasing demands from key stake holders and opposition parties for tax rebate on insurance policies.
Headed by Bihar Deputy Chief Minister Samrat Choudhary, the GoM has been asked to submit its report in October. This panel will also ascertain other matters, like the GST levy on insurance policies purchased by resident welfare associations. The GST Council will review the report at its next meeting in November, with a final decision expected at that time.
Lowering the current 18% GST on life and health insurance premiums has gained significant momentum and widespread support among the states, especially after it was brought up during the last parliamentary session.
In addition to the above, a significant decision was made at the 54th GST Council meeting, held on September 9, 2024, to reduce the GST rate on cancer drugs from 12% to 5%, providing substantial relief for patients.
This is part of the ongoing process of rationalizing GST rates on various goods and services, in a bid to make it more manageable for businesses and address key fiscal issues.
