A GoM, led by Bihar’s Deputy CM Samrat Chaudhary, proposed full GST exemption on pure term life insurance policies.
The GoM suggested reducing GST on individual health insurance premiums from 18% to 5%.
GST exemption was recommended for health insurance for senior citizens.
IRDAI pointed out that many developed countries, like those in the EU and Canada, do not charge VAT or GST on insurance.
Proposals include GST exemptions for micro-insurance, senior citizen health insurance, and term life insurance within certain limits.
1. Medical services are GST-exempt, but insurance premiums are taxed, creating an unfair burden that needs to be addressed.