Sat Dec 21 15:48:25 UTC 2024: **GST Council Defers Decision on Health Insurance Premium Tax Rates**
Jaipur, Rajasthan – The Goods and Services Tax (GST) Council concluded its 55th meeting today without reaching a consensus on reducing tax rates on health insurance premiums. While the council had considered proposals to lower or eliminate taxes on various insurance premiums, including those for senior citizens and term life insurance, a final decision was postponed.
According to officials, further technical aspects require clarification. A Group of Ministers (GoM), headed by Bihar Deputy Chief Minister, Samrat Chaudhary, has been tasked with addressing these issues and will reconvene in January to deliberate further.
The GoM, previously recommending GST exemption for term life insurance and senior citizen health insurance premiums (up to a certain limit), will now reconsider the proposals in light of the council’s decision. While premiums for health insurance coverage up to ₹5 lakh may be considered for exemption for individuals other than senior citizens, premiums exceeding this limit will likely remain subject to an 18% GST.
The decision to defer the tax rate reduction was made under the chairmanship of Union Finance Minister Nirmala Sitharaman. The council cited the need for more discussion among members as the reason for the postponement.
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