Jaisalmer/New Delhi, Dec 21 (IANS): The Group of Ministers (GoM) has prepared a detailed report on GST decisions regarding various insurances, and exemption on the premium paid for the policies will be reviewed in the next meeting of the GST Council, Bihar Deputy Chief Minister Samrat Choudhary said on Saturday.
Speaking to IANS after attending the 55th GST Council meeting in Jaisalmer, Choudhary, who also holds the Finance portfolio, said several GoM members suggested that a decision should be taken by holding another meeting regarding the report on insurance policies.
"In the next meeting, whether it is group insurance, individual insurance, insurance for senior citizens or insurance for the disabled, GST exemption on the premium paid for the policies will be considered," he said.
"After this, the report will be presented in detail only after the next meeting. There are 148 items and all will be reviewed," said Choudhary, Chair of the GoM.
Asked about the timing of the next meeting of the GST Council, he said that the next meeting will be held in January.
Meanwhile, the 55th GST Council meet, chaired by Finance Minister Nirmala Sitharaman, deferred the decision to cut rates on life and health insurance premiums.
Earlier in November, the GoM had suggested an exemption from GST on the premium paid for term life insurance policies. It was also proposed to exempt from the GST on the premium paid by senior citizens for health insurance cover.
For individuals other than senior citizens, a discount was recommended on health insurance premiums covering policies up to Rs 5 lakh. However, the existing 18 per cent GST rate will continue to apply to policies with coverage above Rs 5 lakh.
The GST Council will further deliberate on the recommendations in its next meeting, as some more technical aspects remain to be sorted out.
There has been a long-standing demand for GST reduction on life and health insurance premiums. It is believed that if GST is reduced on insurance premiums, then this move of the Council will reduce the tax burden on both insurers and policyholders.