Shares of health and insurance companies have seen a boost following news of a potential reduction in the Goods and Services Tax (GST) rate for the sector. According to CNBC Awaaz, there is a proposal to lower the GST on health and life insurance premiums from the current 18% to 5%.
Key Points:
- Proposal Details: The GST rate for health and life insurance premiums might be reduced to 5%, a significant drop from the current rate of 18%. This proposal is currently under review by the GST rate rationalisation committee.
- Exemption Consideration: Sources mentioned that the GST committee is not in favor of a complete exemption but supports the proposed reduction to 5%.
Market Reaction:
- HDFC Life Insurance: Shares rose by 2.16% to ₹711.30 on NSE.
- LIC: Shares rose by 1.44% to ₹1,139.70 on NSE.
- SBI Life Insurance: Shares rose by 0.55% to ₹1,694.95 on NSE.
- ICICI Prudential: Shares rose by 2.11% to ₹741.40 on NSE.
Other Notable Movements:
- Medi Assist Healthcare Services: Shares surged by 1.77% to ₹542.75 on NSE.
- New India Assurance Company Ltd: Shares increased by 1.35% to ₹266.95 on NSE.
- Go Digit General Insurance: Shares went up by 1.03% to ₹329.85 on NSE.
The GST rate rationalisation committee is scheduled to meet on August 22 to discuss the proposal further.