Decision to cut GST on insurance premium put off

New Delhi : The GST Council has arrived at a broad consensus on reducing Goods and Services Tax on health and life insurance premiums from the current 18 percent, but a final decision would be taken in the next meeting, sources said.

The Fitment Committee, comprising the Centre and state tax officials, on Monday presented a report giving data and analysis and implications of GST reduction on life, health and reinsurance premiums.

“Broad consensus has been reached on GST rate reduction on health and life insurance but modalities would be decided in the next council meeting,” one of the sources said.

The 54th meeting of the GST council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, is currently underway.

Sources said most states were on board with rate reduction as the monthly GST collections are seeing an uptrend providing room for taking taxpayer-friendly measures.

If GST rates are reduced, it would be beneficial for crores of policyholders as the premium would come down.