Life and Health Insurance May Not Attract Any GST Soon – CNBC TV18

Soon, Life and Health Insurance Premiums May Not Attract Any Goods and Services Tax (GST), With the Center Formally Proposing an exemption as part of its generation tax reofstors.

Bihar Deputy Chief Minister and Convenor of the group of ministers (GOM) on Insurance, Samrat Choudhary, Said on Wednsday That The Proposal has been discusated and will not do before the GST COFRECIL FOR FOR Approval.

“Center’s proposal is clear that for the insurance sector, individual and family (policies) Reporters after the meeting of the gom.

He Further Added: “All members have given their approval for lowering rates, some states have given their own views,” Noting that a final call on rates will be taken by the counCil.

Finance minister nirmala sitharaman, who addressed the gom at the opening, urged states to deliberate collectively on the proposals.

Shee set the ball rolling and suggested that states should sit togeether and debate on the proposals, “said gajendra singh, providing an update on the ongoing deliberations.

Discussions on Insurance are still underway, with no final decision or recommendations. Some states have expressed reservations, while others have welcomed the move.

Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, Confirmed that the Gom is Likely to Propose a Complete Exemption of GST on HELTTH and Life Insuration.

“Overall loss for this will be ₹ 9,700 Crore but still we need to be meticulous. He also pointed out:

“Few States are concerned that with the benefit of the benefits of lower gst rates to the policy holders or not and council should have a framework to ensures

Manoj Mishra, Partner and Tax Controversary Management Leader, Grant Thornton Bharat, said, “The proposed online gaming bill comes at a critical juncture for the sector. In the PAST Year, online gaming Hasing Undergone a Structural Shift in Taxation, with the October 2023 GST Amendments The Entre Face Value of Deposits under the 28% Rate. The sector’s scales and its potential as a stable revealed stream for the exchequer.

At the same time, the policy landscape is deteround increasing complex. The new bill seeks to impose stricter regulatory guardrails, while discussions are underway to further elevate gst on online gaming to 40%, effectively category Taken Togeether, these measures place the sector at a CUSP: The Government must balance the legitimate social concerns surfaceing online gaming with the effect. Regulated, Tax-Paying Industry. An overly prohibitive approach could inadvertent push users towards offshore and unregulated platforms, undermining bot consumer protection and tax revenues. “

Hanut Mehta, CEO & Co-Founder at Bimapay Finsure, Said, “The Recent Proposal to Reduce the GST on Insurance Premiums from 18% to 5% Has Sparked Discussion Accounts The Industry.

“For policyholders, this may bringing down the overall cost of buying insurance. Previous highlighted. The sector’s response is therefore like on

“From a premium Financing StandPoint, A GST CUT can have mixed implications. Policy. Financing services, as customers may still prefer to spores out their payments for convenience and better cash flow management.

“As a Financing company, we expect the change to expand the overall base of insured individuals and businesses, even if the average finance is finance size per policy declines. ecosystem by creating more touchpoints with customers, driving adoption not only of insurance but also of Financing Solutions that Support Long-Term Financial Planning.

“In short, while the proposal may alter the average finance Amount, it has the potential to Deepen Insurance Penetration and Broaden the Financing Opportunity.”

Rajasthan has Separately Raised Concerns About Potential Revenue Loss on Account of Duty Reductions in the Solar Segment, Thought Officials Acknowledges The Sector COCOCTOR COUCTOR COCTOR COCTOR COCTOR

Currently, Life and Health Insurance Premiums Attract 18% GST – a Levy long criticized by insurers and polichlets for inflating costs and discouraging penetration. Removing GST from Such Products is expected to make them more Affordable and Blad Give a Fillip to the government’s goal of expanding insuration coverage across the people.

The center’s proposal on insurance is part of the broader next-gene reform Blueprint, which aims to colrent aims the current four-also structure into just two just two Justo Justo Justo Slabs-A 5% “Merit Rate” and An 18% “Merit Rate” Rate. ” While Most Goods and Services Bold Fall Under One of these two categories, insurance is likely to be treated as a special case and moved out of the gst net entrancele.

Meanwhile, in a post on x, the finance ministry reiterated the government’s consultative approach, saying: Saying:

“The Central Government Remains Committed to Building A Broad-Based Consensus with the States in the Coming Weeks to Implement the Next Generation of GST Reforms in the Spirit of Cooperative Federalism.”

The gom on health and life insurance continues its deliberations today, while another key gom on rate rationalization is scheduled to meet tomorrow. The reports from these ministerial groups will form the Basis of the GST Council’s decisions in the coming weeks.