GST: GST may be abolished from Health and Term Life Insurance Premium, how much will your premium be reduced?

Goods and Services Tax: It applies to all the products and services used in the country. Insurance is registered under financial services in our country. Therefore, GST is also levied on its premium.

Premium is the amount that you keep paying at a fixed time to avail the benefits of insurance. Along with this premium amount, you have to pay 18 percent GST to the government. There is a demand for exemption regarding this GST.

What is the demand?

For a long time, there has been a demand from the government that policyholders in term life insurance and health insurance should be given an exemption. It is being demanded that all pensioners in term life insurance and senior citizens in health insurance should get exemption from premium GST.

Who is making the demand?

The GST Council has also been considering removing it for a long time. At the same time, a committee of ministers has also been recommending for a long time. The Insurance Regulatory and Development Authority of India (IRDAI) is also supporting this demand. The proposal for this demand can be presented in the next meeting of the GST Council. The date of the next meeting of the GST Council has not been revealed yet.

How much profit will you get?
If a person takes a term life insurance plan. The demand put forward by the ministers is accepted by the GST Council. Then you can find out the profit by deducting 18 percent from your current premium.

Current premium - 18 percent = profit
Similarly, senior citizens can also find out the benefit by deducting 18 percent from the premium paid for health insurance. The premium received on any insurance depends on many things. This premium depends on your age, health, and the insurance amount etc.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.