Senior citizens are expected to benefit from GST exemption on health insurance premiums. For others, health insurance cover up to Rs 5 lakh is likely to be GST-free, while coverage above that amount will continue to attract an 18 per cent GST rate.

The Group of Ministers has suggested GST exemption on term insurance and health insurance policies for senior citizens

States advocate for exempting health insurance premiums for seniors, term life insurance, and propose tax changes on various items.

GoM lowers GST rates on water, bicycles, notebooks to 5%, proposes hike on high-end watches, shoes. Revenue gain expected.

The GST exemption/ reduction on life and health insurance is a long-pending demand of the industry as the move would alleviate the tax burden on both insurers and policyholders.

In recent turn of events, the Group of Ministers (GoM) proposed to exempt Goods and Services Tax (GST) on term life insurance and health insurance premiums for senior citizens apart from the other proposed changes to the GST.

The GST Council addressed this issue during its September meeting, following discussions about the 18 per cent GST on life and health insurance premiums.

GST GoM on rate rationalisation discusses rate hike on high-end wrist watches, shoes; GST on packaged water to be cut.