Wed Sep 03 05:30:00 UTC 2025: Okay, here’s a news article summarizing the text:

**Headline: GST Council Meeting: Major Rate Cuts Expected, Relief for Consumers on Horizon**

**New Delhi:** In a move poised to provide significant relief to the average citizen, the Goods and Services Tax (GST) Council is expected to announce substantial reductions in GST rates on a wide range of goods during its ongoing two-day meeting. The anticipated changes fulfill Prime Minister Narendra Modi’s promise to deliver a “Diwali gift” to the public, made during his Independence Day address.

Sources indicate that hundreds of items could see price reductions as a result of the rate revisions. Notably, the Council is also considering lowering or even eliminating the GST levied on insurance premiums, a move that could make health and term insurance policies significantly more affordable.

Currently, health insurance premiums are subject to an 18% GST, a burden that Reliance General Insurance CEO Rakesh Jain argues disproportionately affects middle-income families and senior citizens. Jain contends that removing the tax would not only lower costs but also encourage wider adoption of health insurance, shifting it from a discretionary purchase to a necessity. “On a ₹10,000 premium policy, an additional ₹1,800 tax is levied, which hinders families already facing various expenses from purchasing insurance,” he explained.

The high cost of healthcare in India, often outpacing general inflation, places a considerable financial strain on families. Unexpected medical emergencies can wipe out years of savings. While insurance could mitigate this risk, its penetration remains limited due to affordability concerns.

The potential changes could mean significant savings for consumers. For example, a term insurance policy currently costing ₹590 (including ₹18 GST on ₹500 basic premium) could see its price drop to just ₹500 if the tax is removed.

The GST Council’s decisions are eagerly awaited and are expected to have a broad impact on the Indian economy and the financial well-being of its citizens.

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