Insurance Revolution: Zero GST on Health and Life Policies?

The Indian government is contemplating the removal of Goods and Services Tax (GST) on health and life insurance premiums. This move comes in response to growing demands from stakeholders and states to reduce the current 18% GST rate on insurance policies. The proposal aims to make insurance more affordable and accessible to the general public, potentially boosting insurance penetration in the country. However, concerns have been raised about the impact on insurance companies' input tax credits and the possibility of increased premiums. The government is carefully weighing these factors against the potential benefits of increased insurance coverage for citizens. A final decision is expected to be made by the GST Council in its upcoming meeting.

 

Source: Economic Times