Health Insurance: Central government can remove GST from health insurance, people of this age group will benefit, know

New Delhi : Big news is coming out regarding life insurance premium and health insurance of senior citizens. The central government can give GST exemption on term life insurance policies and health insurance premiums for senior citizens.

A big update has come regarding life insurance premium and health insurance of senior citizens. The central government can give GST exemption on term life insurance policies and health insurance premiums for senior citizens. Most members of the state ministerial panel have supported cutting taxes to benefit the common man.

A Group of Ministers met on Saturday to decide on the GST rate on life and health insurance. In which the premium paid for life insurance and health insurance by senior citizens can be exempted from tax. Apart from this, it was decided to exempt from GST the premium paid for health insurance with coverage up to Rs 5 lakh for other individuals.

However, the final decision in this regard will be taken by the GST Council. At present, 18 per cent GST will continue to be levied on premiums paid for health insurance coverage above Rs 5 lakh. Currently, 18 percent GST is levied on life insurance premiums paid for term policies and family floater policies. GoM members broadly agreed to cut rates on insurance premiums, an official who attended the meeting said. The final decision will be taken by the GST Council.

Bihar Deputy Chief Minister Samrat Chaudhary, who attended the meeting, said that every member of the Group of Ministers wants to provide relief to the people. Special attention will be given to senior citizens. We will submit a report to the council. However, no GST may be levied on insurance premiums paid for senior citizens, irrespective of the coverage amount.

The GST Council, in its meeting last month, had decided to set up a 13-member Group of Ministers to decide on the tax on health and life insurance premiums. Samrat Chaudhary is the convener of the Group of Ministers. It includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana. The Group of Ministers was directed to submit its report to the Council by the end of October.