GST Council: Will health & life insurance may cheaper? Consensus reached on tax exemption

GST Council: An important meeting of the GST Council was held in Delhi. While  mainly two issues were discussed, reducing the GST rates on health insurance, and imposing 18% GST on online (by debit and credit cards) transactions of less than Rs 2000. At present, the insurance premium is not going to become cheaper, because the final decision on this issue has been postponed till the next meeting. Apart from this, it has been decided to reduce the GST rates on namkeen from 18% to 12%. Also, it has been agreed to reduce the GST rates on some cancer medicines.

Reduce the GST rates on some cancer medicines

During the meetingIt has been decided to reduce the GST rates on namkeen from 18% to 12%. Also, it has been agreed to reduce the GST rates on some cancer medicines. During the meeting, the Finance Minister of Uttarakhand said that GST on pilgrimage has been reduced to 5%. In this meeting led by Finance Minister Nirmala Sitharaman, there was a broad consensus on reducing the GST rate on health and life insurance premium from the current 18 percent. The next meeting of the GST Council is going to be held in November

54th GST Council Meeting

Currently 18% GST is levied on health and life insurance. If the government removes or reduces GST on it, then people will get cheaper insurance. GST can be reduced up to 18% on insurance premium. A group of ministers has been formed in the meeting, which will consider it further. In such a situation, whether the 18% GST tax on health insurance premium will be reduced or abolished, the final decision on this will be taken in the next meeting.

Also read: GST Council Meeting: Key Topics on the Agenda

Road, Transport & Highways Minister Nitin Gadkari

Minister Nitin Gadkari written a letter to Finance Minister Nirmala Sitharaman demanding removal of GST from life insurance and health insurance premium. Currently 18% GST is levied on health and life insurance. If the government removes or reduces GST on this, then people will get cheaper insurance. Also, the demand for insurance products will increase in the most populous country. Finance ministers or their representatives of all the states participated in the GST Council meeting held in Delhi.