GST On Insurance: Decision To Be Taken At GST Council's November Meet Says FM

The GST Council has decided to set up a new GoMs (Group of Ministers) on medical and health insurance. It will be the rate rationalisation GoM headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose.

Speaking to media after the GST Council's meeting, Finance Minister Nirmala Sitharaman said that the new GoM has been asked to look into the insurance GST matter and come up with a report by the end of October 2024.

The GST council which will meet in November will take the final call based on this report which will come from the GoM.

In August 2024, Union Minister Nitin Gadkari had written to the Finance Minister, urging her to consider withdrawing the 18 percent GST on life and medical insurance.

Gadkari wrote to Nirmala Sitharaman after LIC employees in Nagpur apprised him of the challenges the insurance sector was facing. In his letter, Gadkari argued that GST on insurance taxes life's uncertainties and hinders sector growth, and therefore it should be removed.

Following Nitin Gadkari's letter, opposition parties also demanded the withdrawal of GST on insurance products. On August 6, 2024, INDIA bloc members led by Congress leader Rahul Gandhi protested outside Makar Dwar in Parliament against Central Govt, demanding the rollback of GST on health and life insurance.

Also Watch: Tech Layoff Wave: Intel, Cisco, Dell, Apple and More Cut Jobs in 2024