Govt proposes to exempt health, life insurance from GST, new reform proposal to be levied at…
The government proposed two exemptions from the GST tax system. Bihar Deputy Prime Minister and insurance collector GST proposed to exclude the life and health insurance premium.
GOVT proposes health, life insurance from GST, the new reform proposal to be obtained from new rates.
The government proposed two exemptions from the GST tax system. Bihar Deputy Prime Minister and Insurance Gom Samrat Choudhary said in a statement on Wednesday, excluding GST’s life and health insurance premium. Under the current GST system, 18 percent GST is taken to the premium of Health and Life Insurance. Life and Health Insurance Minister (GOM) will submit the report of the proposals to the GST Council. Some state financial ministers also expressed concerns included in the report.
What did the government suggest for GST reform?
After talking to journalists after the GOM meeting, Choudhary said, “The proposal of the center is clear that the individual and family (policies) of the insurance sector should be exempt from GST. This is discussed and the GOM report will be submitted to the Council.” “All members approved the rates of lowering the rates. Some states gave their own opinion.” He then added that the council would receive the last call in the rates. Choudhary is a 13 -member state GOM’s meeting on health and life insurance.
The center’s proposal to exempt from the GST is part of the upcoming GST reform proposal, including new ways of receiving goods and service tax at a rate of 2 and 18 percent- 5 percent and 18 percent- 5 percent and 18 percent, based on the categorization of products as merit and standard. 13 -member GOM on Health and Life Insurance was established in September to propose tax rates.
Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana, including ministers, was assigned to send his report to the GST Council in October.
In the years 2023-24, the Central and States collected 8,262.94 CRORE via GST in the health insurance premium, while 1,484.36 Crore was collected due to the GST on the health reinsurance premium.
