New Delhi: The Group of Ministers (GoM) under the convenorship of Bihar deputy chief minister Samrat Chaudhary decided to exempt health insurance premium from GST for senior citizens on Saturday (October 19).
The insurance premiums for other groups which provide cover below Rs 5 lakh would not attract GST. However, if a premium provides a cover above Rs 5 lakh, it would continue to attract a GST of 18%. For senior citizens, the GST has been waived on premiums irrespective of the total coverage an insurance scheme provides.
The final call on all the decisions taken by the GoM would be taken by the GST council headed by finance minister Nirmala Sitharaman. The GoM is expected to submit its report to the council by the end of this month. The Council would meet in November.
The GoM also decided to waive GST on term life insurance premiums. Currently it attracts 18% GST.
According to The Hindu Business Line another GoM headed by Chaudhary also proposed changing rates on a few other products. For packaged water above 20 litre, it has proposed to reduce the rate to 5 % from 18%. For bicycles worth below Rs 10,000 and for notebooks, the GoM suggested the reduction from from 12% to 5%.
On the other hand, the GoM has proposed that shoes worth above Rs 15,000 and wrist watches above worth Rs 25,000 be levied the GST to the tune of 28%.
This rates rationalisation exercise is expected to give a revenue gain of Rs 22,000 crore to the Centre and states
Every GoM member wants to give relief to people. Special focus be on senior citizens. We will submit a report to the Council. A final decision will be taken by the Council,” said Chaudhary.
