GST Reduction to Make Insurance More Affordable, Says Finance Department Joint Secretary

The Finance Department's Joint Secretary stated that reducing the GST rate on insurance will make it more affordable for consumers. Currently, insurance premiums face a standard GST of 18%, but lowering it could enhance coverage affordability and penetration. This reduction would particularly benefit life and health insurance sectors, where rising premiums are a concern. The proposal is under review by the GST Council, with discussions focusing on achieving the balance between tax revenue needs and consumer accessibility. A lowered rate could stimulate growth in the insurance sector, supporting both insurers and policyholders.