GST Council Deliberates on Tax Rates for Insurance Policies

The GST Council is reviewing recommendations from a Group of Ministers concerning potential changes to GST on life and health insurance. A GoM, led by Bihar's Deputy CM, Samrat Chaudhary, was formed to investigate these issues. Current GST on insurance stands at 18%, with fiscal revenues reported.

The ongoing discussions by the GST Council are set to determine the fate of GST rates on life and health insurance policies. These deliberations follow recommendations forwarded by a Group of Ministers (GoM), specifically formed to address pertinent issues related to these taxes.

The council had initially brought this topic to the table during its 54th meeting on September 9, 2024, and decided to form the GoM under Deputy Chief Minister of Bihar, Samrat Chaudhary, to examine the situation in-depth.

Minister of State for Finance Pankaj Chaudhary confirmed that once the GoM's recommendations are finalized, they will be presented to the GST Council. Currently, GST on these insurance services is fixed at 18%, contributing significantly to the national revenue.

(With inputs from agencies.)