‘GoM proposes GST exemption on health and life insurance for individuals’

New Delhi, Aug 20:  In a move aimed at making insurance more affordable, the Group of Ministers (GoM) on insurance proposed a complete exemption of GST on health and life insurance premiums (for individuals), Bihar Deputy Chief Minister Samrat Choudhary said on Wednesday.

The proposal, if accepted, could improve insurance penetration in India’s largely underinsured market.

Bihar Deputy Chief Minister Samrat Choudhary, who is a member of the GoM, confirmed that the recommendation will now be placed before the GST Council for a final decision. He said the council will take a call after consultations with all states.

The GoM’s meeting on August 20 was addressed by Finance Minister Nirmala Sitharaman, who urged states to debate the proposals collectively and arrive at a balanced decision. While some states supported the exemption plan, others raised concerns about possible revenue losses.

Rajasthan GST Council member Gajendra Singh said GST reforms have not caused major revenue losses to states so far, but certain measures like lower duty on solar equipment and a tax cut on insurance could have financial implications.