In a significant development, the GST Council has decided to exempt insurance premiums from the indirect tax, a move hailed as a landmark by industry stakeholders.
This decision is expected to make insurance products more affordable, fostering greater insurance penetration across the country.
The announcement, made by Finance Minister Nirmala Sitharaman during the 56th GST Council meeting, specifies that all individual life insurance policies, including term life, ULIPs, and endowment plans, along with their reinsurance, will no longer be subject to GST.
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This exemption also extends to health insurance policies, providing relief amidst rising medical costs.
Leading industry figures, including LIC CEO & MD R Doraiswamy and IFFCO TOKIO General Insurance MD & CEO Subrata Mondal, have lauded the rate rationalisation as a visionary initiative that supports the goal of insurance for all by 2047 and enhances financial resilience against healthcare inflation.
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(With inputs from agencies.)
