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On Tuesday, senior officials Ministry of Finance, Insurance Regulatory Development and Authority(IRDA) and insurers had met in Delhi to finalise the GST cut proposals before they are sent to GST Council, headed by Finance Minister Nirmala Sithraman that will take a final call on the move
A ministerial panel tasked by the Goods and Service Tax (GST) council to explore feasibility of levying taxes on insurance products may recommend a 5% GST with input tax credit on term plans, officials said.
At a time when the ministerial panel on GST rationalisation is seeking to ensure that the benefits of lower tax are passed on to consumers, life insurance companies have petitioned against exempting term insurance policies from the levy.
The 55th GST Council meeting, held on December 21 in Jaisalmer, Rajasthan, saw several key decisions being made. One significant update was the imposition of an 18% GST on the profit margin for sales of second-hand small cars, including electric vehicles, applicable only to registered dealers. Previously, this tax rate was 12%.
A Group of Ministers under the convenorship of Deputy Chief Minister of Bihar, Samrat Chaudhary, has submitted a report regarding GST rates on insurance premium, a senior government official said here on Wednesday. Its recommendations are expected to be discussed in the GST Council meeting scheduled to take place on Saturday, December 21.
As GST Council prepares to take a call on restructuring rate on various insurance products, government told the Lok Sabha on Monday that GST on insurance premia fetched over ₹52,000 crore in last 5 years. Centre also said GST collection from unexempted educational services was around ₹12,000 crore.
The Goods and Services Tax (GST) Council is likely to discuss the relief on GST on health and life insurance items, as well as rejigging of rates on over 100 items as it is scheduled to meet at Jaisalmer in Rajasthan on December 21, sources said.
The GST Council is expected to discuss potential tax relief on select insurance plans at its upcoming meeting in Rajasthan on December 21–22, according to a report by The Times of India. The Council may consider eliminating the 18 per cent goods and services tax (GST) on term insurance plans and health insurance policies, particularly for senior citizens and coverage plans up to Rs 5 lakh
A group of ministers (GoM) tasked by the Goods and Services Tax (GST) Council to oversee rate rationalisation, is considering lowering the GST on premiums paid for life and health insurance policies. This potential reduction could offer a good financial relief to individuals and families having insurance coverage. “Every GoM member wants to give relief to people. The special focus will be on senior citizens. We will submit a report to the council. A final decision will be taken by the council,” says Samrat Chaudhary, deputy chief minister of Bihar, and convenor of GoMs.
The Goods and Services Tax (GST) Council is considering exempting premiums paid for life and health insurance from GST.