The Fitment Committee of the GST Council has reached a consensus to exempt life insurance from the Goods and Services Tax (GST). This decision comes as a potential relief for policyholders and the insurance industry alike.
Currently, all types of health and life insurance policies attract an 18% GST rate. While the committee has agreed on exempting life insurance, it is still deliberating on a proposal regarding health insurance policies.
This move could make life insurance more affordable for consumers, potentially encouraging greater adoption of life coverage across India. However, the final decision rests with the GST Council, which will consider the committee’s recommendations.
The insurance sector and policyholders will be watching closely for the outcome of these deliberations, especially regarding the status of health insurance policies. Any changes in GST applicability could have significant implications for insurance premiums and overall market dynamics.
As discussions continue, stakeholders await further clarity on the potential implementation timeline and any conditions attached to the proposed exemption.
