There is a big update regarding life insurance premiums and health insurance for senior citizens. The central government may give a GST exemption on term life insurance policies and health insurance premiums for senior citizens. Most members of the state ministerial panel have supported reducing taxes to benefit the common people.

Big Update on Life and Health Insurance for Senior Citizens

The central government may grant a GST exemption on term life insurance policies and health insurance premiums for senior citizens. Most members of the state ministerial panel have supported reducing taxes to benefit the common people.

Discussion on GST Rate Reduction

A group of ministers met on Saturday to discuss changes in the GST rate on life and health insurance. They proposed exempting senior citizens from paying GST on their insurance premiums. Additionally, they suggested removing GST on health insurance premiums up to ₹5 lakh for other individuals.

Agreement on GST Removal for Insurance

The final decision will be made by the GST Council. Currently, an 18% GST is applied to health insurance coverage above ₹5 lakh, as well as term life insurance and family floater policies. Officials at the meeting indicated broad support for reducing insurance premium rates.

Relief for Senior Citizens

Bihar Deputy Chief Minister Samrat Choudhary, who attended the meeting, stated that all GoM members want to provide relief, particularly for senior citizens. A report will be submitted to the council, and there is a possibility of full GST exemption on senior citizens’ insurance premiums, regardless of the coverage amount.

Report Submission by End of the Month

Last month, the GST Council formed a 13-member ministerial group to review tax rates on life and health insurance. The group, led by Samrat Choudhary, includes ministers from states like Uttar Pradesh, Rajasthan, West Bengal, Karnataka, and Tamil Nadu. The final report will be submitted to the council by the end of October.