The central government is likely to take some key decisions in the upcoming GST Council meeting . As part of this meeting, it is informed that GST will be removed on health insurance and term life insurance policies.
The Ministerial Sub-Committee of the GST Council recently held a meeting in this regard. Majority of the members supported the cancellation of GST on insurance to benefit the common man and give relief to the policy holders. This exemption will be available on health insurance policies under Rs.5 lakh taken by common people.
18 percent GST will continue as it is for policies above Rs.5 lakh. Along with these, there have been proposals to reduce the existing GST from 12 percent to 5 percent on bicycles and vote books under the price of Rs.10,000. They also want to reduce the GST on packaged drinking water above 20 liters from 18 percent to 5 percent. GST on some luxury products will be increased from 18 percent to 28 percent to offset the loss of income due to this.