GST on term life & senior citizen health insurance premiums may be exempted

LUXURY WATCHES, SHOES TO DRAW 28%

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Term life insurance policies and senior citizens' health insurance premium are likely to be exempted from GST as most members of a state ministerial panel favoured cutting taxes to benefit the common man, an official said on Saturday.

The GoM to decide on GST on health and life insurance premiums in its meeting on Saturday decided to exempt GST on premiums paid by individuals, other than senior citizens, for health insurance with coverage of up to Rs 5 lakh. However, 18 per cent GST will continue to be levied for health insurance cover of over Rs 5 lakh.

Separately, the GoM on GST rate rationalisation, too, met on Saturday and suggested that the GST Council rejig tax rates on a host of goods, including packaged drinking water, bicycles, exercise notebooks, luxury wrist watches, and shoes.

A final decision on GST on health and life insurance premiums, as well as rate rationalisation, is likely to be taken by the GST Council, chaired by Union Finance Minister and comprising state counterparts, in its meeting scheduled to take place next month.