GST Council Edges Closer To Slashing Insurance Premium Taxes, Final Call Next Meet

The Goods and Services Tax (GST) Council has reached a broad consensus on reducing the GST rate on life and health insurance premiums from the current 18 per cent, but a final decision is expected to be made in the next council meeting, according to media reports.

During the 54th GST Council Meeting, chaired by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers, the Fitment Committee presented a report detailing the implications of the GST reduction on these premiums. This committee, composed of officials from both the Centre and states, analysed data and provided insights into how a rate reduction might impact taxpayers.

A source familiar with the matter said, “A broad consensus has been reached on GST rate reduction for health and life insurance, but the specific modalities will be decided in the next council meeting.”