Parliament panel recommends below 18% GST on health insurance, microinsurance

The parliamentary panel on finance, led by MP Jayant Sinha, has recommended to reduce the Goods and Services Tax (GST) on health insurance products for senior citizens and microinsurance products below 18 percent to make it more affordable.

“The Committee feels that there is a need to rationalise the GST rate on insurance products, especially health and term insurance, which is 18 percent at present. The high rate of GST results in a high premium burden, which acts as a deterrent to getting insurance policies,” the panel said in its report on ‘Performance review and regulation of insurance sector’.

The committee is of the view that to make insurance more affordable, GST rates applicable to health insurance products, particularly retail policies for senior citizens and microinsurance policies and term policies may be reduced, it said.

Read more at: moneycontrol