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The Group of Ministers (GoM) on GST rate rationalisation met on Thursday and largely agreed to maintain the current four-tier tax slab system. The panel has asked tax officers to analyse the impact of adjusting rates on certain items and present their findings to the GST Council.
The Goods and Services Tax (GST) Council is likely to discuss the issue of exemption of health and life insurance from the 18 percent levy when it will meet on September 9, two people familiar with the development said.
Union Finance Minister Nirmala Sitharaman told opposition leaders to convince state finance ministers to propose removal of the 18 per cent goods and service tax on life and health insurance premiums at GST Council meetings, PTI reported.
“Several suggestions have come up and I shall take up with the GST Council,” Sitharaman said on the withdrawal of 18% goods and services tax (GST) on life and health insurance premiums
The Union government collected over ₹24,500 crore through GST on health insurance and reinsurance premium in the last three years, Finance Ministry data showed on Monday. This will further push the demand for lowering GST on health insurance.
West Bengal Chief Minister Mamata Banerjee on August 2 wrote to Union Finance Minister Nirmala Sitharaman and urged her to withdraw 18% GST on life insurance and health insurance policies.
To make health insurance more affordable and attractive, the Centre may push for a lower GST tax rate to 12%, compared to 18% now, on health insurance premiums up to Rs 30,000.