GST Council Postpones Decision on Reducing Taxes for Insurance Premiums
The GST Council has postponed its decision on lowering the tax rates for life and health insurance premiums. The decision will be further discussed in January, with key proposals focusing on exemptions for term life insurance and premiums for senior citizens.
The GST Council delays the decision on reducing taxes for life and health insurance premiums. Key proposals to be discussed in January, including senior citizen exemptions.
During its 55th meeting on Sunday, chaired by Union Finance Minister Nirmala Sitharaman, the GST Council decided to delay the decision on tax cuts for life and health insurance premiums. The Council stated that additional technical consultations are required before any changes can be made.
Group of Ministers to Meet Again for Further Talks
Bihar Deputy Chief Minister Samrat Chaudhary, who leads the Group of Ministers (GoM) reviewing the issue, mentioned that a follow-up meeting was necessary to address the unresolved matters. The GoM will reconvene in January to finalize decisions on taxes for various insurance policies, including those for individuals, groups, and senior citizens.
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Proposals for GST Exemptions on Insurance Premiums
In their November meeting, the GoM suggested several tax exemptions, such as waiving the GST on term life insurance premiums and providing exemptions for health insurance premiums for senior citizens. Additionally, the GoM proposed imposing GST on health insurance premiums for individuals up to Rs 5 lakh.
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