\nTerm life insurance premiums<\/span><\/p>\n<\/li>\n\nHealth insurance premiums for senior citizens, regardless of coverage<\/span><\/p>\n<\/li>\n\nAdditionally, health plans up to \u20b95\u202flakh for others may also be considered exempt.
\n<\/span><\/p>\nContext & Key Inputs<\/h3>\n\n- \n
The Insurance Regulatory and Development Authority of India (IRDAI) has already submitted its feedback\u2014key for final decision-making<\/span> .<\/p>\n<\/li>\n- \n
Currently, standard 18% GST is levied on life and health policies, prompting industry calls for relief to enhance coverage <\/span>.<\/p>\nFiscal Trade-offs<\/h3>\n
Government estimates suggest a potential annual revenue loss of \u20b92,600\u202fcrore, split between:<\/span><\/p>\n\n- \n
\u20b9200\u202fcrore from term-life exemption<\/span><\/p>\n<\/li>\n- \n
\u20b92,400\u202fcrore from health insurance exemptions.<\/span><\/p>\n<\/li>\n<\/ul>\nYet, advocates argue that higher insurance penetration\u2014especially among senior citizens\u2014could offset this by broadening the tax base<\/span>.<\/p>\nStakeholder Concerns<\/h3>\n
Insurers warn that full exemption might block input-tax credit (ITC), raising policy costs. Instead, a moderate reduction to 5% with ITC retaining has been floated as a middle-path solution<\/span> .<\/p>\nWhy It Matters<\/h3>\n\n- \n
For consumers: Relief would make insurance more affordable\u2014potentially boosting coverage.<\/p>\n<\/li>\n
- \n
For insurers: Exemption could raise costs without ITC, so tax structure adjustments are critical.<\/p>\n<\/li>\n
- \n
For govt: Must balance fiscal loss with broader social impact and insurance-led financial security.<\/p>\n<\/li>\n<\/ul>\n
Takeaway<\/h3>\n\n- \n
GoM recommendation: Full GST exemption on term-life and senior citizens\u2019 health insurance, plus coverage-based relief for others.<\/p>\n<\/li>\n
- \n
Next step: Expect Council discussion soon, based on regulatory inputs and financial trade-offs.<\/p>\n<\/li>\n
- \n
Outcome to watch: Whether exemption wins, and how ITC concerns are resolved\u2014affecting premium costs and market growth.<\/p>\n<\/li>\n<\/ul>\n
\u00a0<\/span><\/p>\n<\/li>\n<\/ul>\n<\/h3>\n<\/li>\n<\/ul>\n
\n","protected":false},"excerpt":{"rendered":"
\u00a0What\u2019s Gearing Up The GST Council is set to revisit the tax relief issue at its next meeting, likely before the monsoon session of Parliament. The Group of Ministers (GoM) is expected to again push for full GST exemption on: Term life insurance premiums Health insurance premiums for senior citizens, regardless of coverage Additionally, health […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-10100","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=10100"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10100\/revisions"}],"predecessor-version":[{"id":10167,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/10100\/revisions\/10167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/10101"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=10100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=10100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=10100"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=10100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}