GST Council to Decide on Reducing Health Insurance Premium Rates

The 54th GST Council meeting is poised to deliver a key decision on the GST rate for health insurance premiums. Expected deliberations could significantly lower the rate from the current 18% for individuals and senior citizens, addressing major financial implications.

The 54th GST Council meeting is expected to address the GST rate on health insurance premiums, potentially bringing significant relief to policyholders.

Sources indicate the GST Council aims to reduce the GST rate from 18% to nil for individual and senior citizen health insurance premiums. The fitment committee, which includes central and state tax officials, has already reviewed this proposal.

On Monday, the council will present a comprehensive report on the GST levied on life, health, and reinsurance premiums, along with the related revenue implications. Another topic on the agenda is the potential taxation of online payments above Rs 2,000, which are currently untaxed. The council, chaired by Finance Minister Nirmala Sitharaman, includes state ministers as its members.

Previously, the reconstituted Group of Ministers on GST for rate rationalisation reviewed proposals for rate changes in the health insurance sector. Bihar Deputy CM Samrat Chaudhary confirmed the ongoing review, and West Bengal Finance Minister Chandrima Bhattacharya has formally requested a GST rate cut.

The last GST Council meeting, held on June 22, saw significant decisions such as Aadhaar biometric integration and exemptions in railway services. These upcoming decisions are eagerly anticipated.

(With inputs from agencies.)