GST Council to Review Proposal for Exempting Health and Term Life Insurance

The GST Council is set to review a proposal to exempt health and term life insurance from GST, currently taxed at 18%. The Group of Ministers (GoM) recommended this exemption to address affordability concerns and boost demand for these insurance products. If approved, the exemption could provide significant relief to policyholders and reshape the insurance landscape in India. However, questions remain about whether insurers will pass on the full benefit to consumers. The upcoming GST Council meeting will be crucial in determining the outcome of this proposal, which could make insurance more accessible and appealing to a wider audience.