Ahmedabad: Discussion of GST change in the insurance sector, which has been going on for some time, is now in its final stages. According to reports, GST can be reduced to a major cut on health and life insurance premiums in the upcoming GST Council meeting.
According to sources, the ministers set up on this issue have recommended 5 percent GST. GST on health and life insurance premiums is not expected to end completely. GST can be agreed with 5 percent GST with input tax credit in ministers.
After the IRDIA report, the minister is reconsideration of the issue. Insurance companies are demanding 12 percent GST. The companies had expressed concern that the premium would increase if GST is waived.
GST on Health and Term Insurance Due to zero, the government saves Rs 10,000. This can cause a loss of Rs 3,500 crore. The next meeting of the Group of Ministers will be held in April. The GST Council meeting is likely in May.
In the first report of the Ministers, it was recommended not to impose GST on health insurance up to Rs 5 lakh for senior citizens. It was also recommended to waive GST on life insurance and term plan premium.
However, insurance companies are demanding 12 percent GST with input tax credit.
