The Insurance Regulatory and Development Authority of India’s (IRDAI) has again made fresh plea to the Finance Ministry for reduction in GST of health and life insurance, a move, which if approved may lower the premiums of the insurance schemes.
IRDAI has approached the Finance Ministry, requesting it to cut GST rates on life and health insurance premiums, in the wake of the COVID-19 pandemic, which has once again highlighted the need and utility of having an insurance scheme.
Sources told Zee Media that IRDAI has requested the Finance Ministry to reduce the GST on insurance from 18 percent to 5 percent. In the GST 18 percent bracket on insurance, the tax part for Rs 5,000 is estimated at Rs 900.
It must be noted that IRDAI has for long been pressing for the demand to reduce GST on insurance. All eyes will now be upon the 42nd GST Council’s next meeting which is scheduled for September 19.
In the 41st meeting of the Goods and Services Tax (GST) Council held in August, held deliberations via video conferencing on ways to make up for the shortfall in states’ revenues.
The GST Council meeting comprises representatives of all states, and headed by Union Finance Minister Nirmala Sitharaman,