GST cut on life, health insurance likely; relief for policyholders may be around the corner

The upcoming GST Council meeting is anticipated to propose significant tax relief for insurance policyholders, potentially making life and health insurance cheaper. There are strong indications that the Council may either reduce or completely eliminate the current 18% GST on these premiums. A GoM has recommended full GST exemption on term life and health policies for senior citizens, and a waiver for health covers up to ₹5 lakh. This move aims to boost insurance penetration, alleviate financial burdens due to rising medical costs, and achieve the goal of "insurance for all."