GST Council Forms GoM to Review Insurance Premium Tax Rates

The GST Council has set up a 13-member Group of Ministers (GoM) to recommend GST rates on health and life insurance premiums. Chaired by Bihar Deputy CM Samrat Choudhary, the GoM will submit its findings by October 30. The review includes a range of insurance products and categories.

The GST Council has established a 13-member Group of Ministers (GoM) to recommend GST rates on premiums for various health and life insurance products. Chaired by Bihar Deputy Chief Minister Samrat Choudhary, the GoM is expected to deliver its report by October 30.

The decision was made during the 54th GST Council meeting on September 9, with the aim of assessing and revising the current tax structure on life and medical insurance. The Council plans to finalize its decision on insurance premium taxation in its next meeting in November, based on the GoM's report.

Presently, an 18 percent GST is imposed on insurance premiums. The panel's Terms of Reference include proposing tax rates for individual, group, family floater, and other medical insurance categories, as well as for various types of life insurance. Discussions are ongoing with some states advocating for complete exemption, while others suggest lowering the rate to 5 percent.

(With inputs from agencies.)