Your health, life insurance premiums might become cheaper next month
The Goods and Services Tax (GST) Council will meet at the end of December, with a focus on possible tax relief on health and life insurance premiums. The meeting, originally scheduled for November, has been aligned with Union Finance Minister Nirmala Sitharaman's pre-budget consultations with state counterparts. The upcoming meeting will also discuss pressing issues like food inflation, unemployment, rural job creation, and capital expenditure momentum.
Meeting to address economic challenges
A government official said to Moneycontrol that the convergence of budget planning and GST policy discussions is tipped to sharpen focus on these challenges. The meeting is also expected to provide relief for health and life insurance policies. The discussions are slated to take place in either Jodhpur or Jaisalmer in Rajasthan.
GST Council may consider exemptions on insurance premiums
The Group of Ministers (GoM) on GST has proposed exemptions that could benefit a large section of the population, particularly seniors and those looking for basic term life coverage. The GoM has proposed a full GST exemption on premiums that are paid for term life insurance, including individual policies and family members. It has also proposed a full exemption on health insurance premiums for senior citizens, irrespective of coverage limits.
GST rate adjustments on luxury goods, essentials also on agenda
The GST Council is also likely to review rate changes on both luxury and essentials. Proposals to raise GST on high-end items such as luxury wristwatches and shoes are under consideration, which could increase revenue by an estimated ₹22,000 crore annually. Meanwhile, GST on essentials such as bicycles, exercise books, and large packs of packaged drinking water could be reduced to ease household expenses.
