GST cut on health insurance: You may not celebrate a likely tax cut this time

As the GST Council prepares for its next meeting on Monday, a big topic on the agenda is the high GST on health and life insurance policies..

While there is talk of lowering the tax, states are worried that insurance companies may not pass the savings on to consumers if theres no system in place to make sure it happens...

The idea of reducing GST on life insurance seems to be mostly agreed upon, with state finance ministers showing fewer concerns about it..

The call to lower GST on health insurance gained momentum after Union Transport Minister Nitin Gadkari urged the Finance Ministry to scrap GST on these policies..

While the Economic Survey predicts that Indias insurance coverage will rise from 3.8% of GDP in FY23 to 4.3% by FY35, the immediate issue of the 18% GST on health insurance continues to be a burden for consumers...