GST exemption on health insurance premiums hailed as game-changer for consumers and industry

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has announced a major reform by exempting health insurance premiums from Goods and Services Tax while allowing insurers to utilise input tax credits, The move is being widely seen as a dual benefit measure that makes health insurance more affordable for consumers while supporting the growth of the insurance sector.

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Sitharaman said the Counci's decision reftects the government's commitment to making healthcare and fi nancial protection more accessible. “Health insurance is an essential safeguard for families, and reducing the tax burden on premiums will encourage greater participation, especially among the middle class and senior citzens," she noted after the meeting.