There may soon be relief from GST on health and term life insurance premiums. According to CNBC Awaaz sources, the GST panel has decided that senior citizens will get complete relief. On the other hand, it has recommended removal of GST on health cover up to Rs 5 lakh and term life insurance premiums for common people.
Apart from this, the panel has also recommended reducing GST on children’s exercise books, packaged water, and bicycles and increasing GST on expensive shoes and watches. The final decision on the panel’s recommendations will be taken in the GST Council meeting to be held next month.
Buying health and term life insurance will soon become cheaper. GST panel (GoM) has recommended removal of GST during the meeting. GST will not be levied on health cover for senior citizens. Also, GST will be removed on health cover up to Rs 5 lakh for everyone. There was also consensus on not imposing GST on term life insurance. According to the news, this decision will provide great relief to individuals and families in term insurance.
Recommendation to increase GST
Apart from the insurance sector, many other things were also discussed in the GST panel meeting. The panel has recommended 5% GST on exercise books, packaged water of more than 20 liters and bicycles costing less than Rs 10,000. Apart from this, GoM has recommended 28% GST on shoes above Rs 15,000 and watches above Rs 25,000.