GST Reduction to Make Insurance More Affordable!

The Finance Department’s Joint Secretary has announced a potential reduction in the Goods and Services Tax (GST) on life and health insurance premiums, currently at 18%. This change aims to make insurance more affordable for all, especially senior citizens.

GST REDUCTION

Key Updates:

  • Proposed GST Exemption: The government is considering exempting GST on term life and health insurance premiums up to ₹5 lakh.
  • Support for Seniors: A special focus on providing relief for senior citizens, potentially exempting them from GST regardless of the premium amount.
  • Group of Ministers (GoM): The GoM is backing these reductions and will submit a report to the GST Council by the end of October.

Premiums over ₹5 lakh will still face an 18% GST, but the proposed changes could significantly ease financial burdens on policyholders.

Stay informed on the latest developments in the insurance industry! For more updates and insights, subscribe to our insurance newsletter and visit My Insurance Dost.