GST Council Forms GoM to Review Tax Rates on Health and Life Insurance Premiums

The GST Council has set up a Group of Ministers (GoM) to assess the taxation rates on health and life insurance premiums. This decision comes amidst industry requests to reduce the 18% GST levied on insurance premiums, which has been argued as a deterrent to insurance penetration. The GoM will review current tax structures, considering global best practices and affordability for Indian citizens. Their findings could potentially lower the tax burden on policyholders and help boost insurance coverage across India, which remains relatively low. This development is a key focus in the council's efforts to promote better financial protection for individuals.