New Delhi: In a significant move aimed at providing financial relief to senior citizens, the Goods and Services Tax (GST) Council is likely to exempt GST on term life insurance premiums for senior citizens. This decision comes after a series of discussions by the Group of Ministers (GoM) on rate rationalization.
Currently, an 18% GST is levied on life insurance premiums, including term policies. The proposed exemption is expected to alleviate the tax burden on senior citizens, making insurance more affordable for them. The GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, has recommended this exemption, emphasizing the need to support the elderly population.
In addition to term life insurance, the GoM has also proposed exempting GST on health insurance premiums for senior citizens. For other citizens, health insurance premiums up to Rs 5 lakh may be exempted, while premiums exceeding this amount will continue to attract an 18% GST.
“The focus is on providing relief to senior citizens. We will submit our report to the GST Council, and a final decision will be taken in the upcoming meeting,” said Chaudhary.
