GST Council forms Group of Ministers (GoM) to review tax rate on health, life insurance

The GST Council has established a Group of Ministers (GoM) to review the tax rates applied to health and life insurance products. This move follows growing concerns among various stakeholders about the current GST framework, which imposes a significant tax burden on insurance premiums. The GoM will examine the implications of these rates on consumers and insurance providers, with an emphasis on balancing revenue generation with consumer affordability. The review process aims to address issues such as the high cost of insurance premiums, which could be discouraging policy purchases. The council's decision will impact the financial viability of insurers and accessibility of insurance products for the general public. The move reflects an ongoing effort to ensure that GST policies are equitable and promote financial inclusivity in the insurance sector.