Mumbai: The 55th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, has postponed a crucial decision on reducing taxes on life and health insurance premiums. The council stated that further technical deliberations were required before any changes could be finalized.
The Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, has been entrusted with examining the matter. Chaudhary informed that a fresh meeting of the GoM would be held in January to address unresolved issues and determine the tax framework for various insurance categories, including individual, group, and senior citizen policies.
In its earlier meeting in November, the GoM had put forth several recommendations aimed at easing the tax burden on insurance policyholders. These included a proposal to waive GST on term life insurance premiums and health insurance premiums for senior citizens. Another recommendation suggested GST exemption on health insurance premiums up to ₹5 lakh for individuals.
While the council’s deferral delays relief for policyholders, the move highlights the complexity of aligning tax reforms with economic and social priorities. The next round of discussions is expected to bring clarity to the government’s approach to reducing the financial burden on insurance buyers.
