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Informist, Wednesday, Aug. 20, 2025

 

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--Bihar Minister: All states agree on need to cut GST on insurance premiums
--Bihar minister:GoM to moot exempting GST on life, health insurance premium
--Rajasthan minister:Few states flag concern at GST cut on insurance premium
--Rajasthan minister: GoM deliberating on GST cut on health, life insurance
--Telangana minister: Insurance premium GST cut may lead to INR-97-bln loss
--Telangana minister:States doubt insurance premium GST cut will be passed on

 

NEW DELHI – The Group of Ministers on Life and Health Insurance favours exempting from goods and services tax the premiums paid by individuals on these insurance products, Bihar's Deputy Chief Minister Samrat Choudhary, convener of the panel, said Wednesday. "We will send our suggestions to the GST Council and a final call will be taken there," Choudhary said after the panel's meeting here. Currently, premiums paid on health and life insurance policies attract 18% GST.

 

The panel is looking at lowering GST on insurance premiums, including for individual, group, and family floater health insurance policies, and especially for those catering to senior citizens, middle-class families, and individuals with mental illnesses. "States agree that GST should go down for insurance though a few states have expressed concerns," Choudhary said.

 

Telangana's Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka said some states, including Telangana, were worried whether insurance companies would pass on the benefit of lower taxes to consumers. At present, the GST regime does not have any mechanism to keep a check on profiteering. The GST Council can decide how it wants to keep a check on profiteering, he said.

 

This was the first meeting of the Group of Ministers on Life and Health Insurance since the last GST Council meeting in December. The panel, which includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana, has been mandated to submit its report to the GST Council by the end of October.

 

In the financial year 2023-24 (Apr-Mar), the Centre and states collected INR 83.00 billion through GST on health insurance premiums and INR 15.00 billion through GST on health reinsurance premiums. Vikramarka said the Centre and states are likely to lose revenue to the tune of INR 97.00 billion if the GST Council decides to slash GST on insurance premiums. The council is expected to meet in September-October.  End

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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