Ministerial Panel to Discuss Tax Cuts on Health and Life Insurance Premiums on October 19

The ministerial panel tasked with reviewing the goods and services tax (GST) on health and life insurance premiums is set to hold its first meeting on October 19, according to officials. Currently, insurance premiums are subject to an 18% GST, and there have been growing calls from various stakeholders to either reduce or completely exempt these premiums from the tax.

Earlier this month, the GST Council established a 13-member Group of Ministers (GoM) to evaluate the tax structure concerning health and life insurance. Bihar Deputy Chief Minister Samrat Choudhary has been appointed as the convenor of this panel.

The decision to form the GoM follows increasing pressure from the insurance industry and consumer advocacy groups, who argue that high taxes on premiums hinder access to essential health and life insurance products. Stakeholders believe that a tax reduction could make these services more affordable and encourage broader coverage among citizens.

The GoM's discussions will focus on the implications of potential tax cuts on revenue generation and the overall insurance market. It will also assess how changes to the GST structure could impact consumer behavior and industry growth.

As the meeting approaches, industry experts and policymakers are keenly observing the developments, with many hoping for a favorable outcome that could enhance the accessibility of insurance products in India. The outcomes of this meeting could significantly influence future policies and the financial landscape for both insurers and consumer