BTTV Exclusive: GST Council To Decide Reducing Tax On Health Insurance Premiums

The 54th GST Council will be convened on 09th September 2024 in Delhi. The Fitment Committee comprising of centre and state revenue officials has reviewed the proposal to reduce the Goods and Services Tax (GST) on individual health insurance premiums but has stopped short of recommending an outright reduction. After extensive deliberations, the committee has left the final decision to the GST Council, presenting them with various options based on potential revenue implications. The proposal, initiated by the Department of Financial Services (DFS) under the Ministry of Finance, aims to make health insurance more affordable by lowering the GST rate from the current 18% to 5% without input tax credit (ITC).  Despite considering these scenarios, the committee refrained from making a specific recommendation, emphasizing the need for the GST Council to evaluate the options based on the broader financial and social implications. Karishma Asoodani brings you a detailed report