Efforts have been going on for a long time to remove GST on insurance. Demands have been raised at different levels to remove GST on insurance. Now two big meetings are going to be held today in this matter. The Group of Ministers formed on GST matters will have two important meetings in Delhi today, Saturday.
The first meeting of the GoM (Group of Ministers) will be held in the morning regarding reduction in rates on health and insurance. Apart from this, the meeting of the GoM constituted for Rates Rationalisation will be held in the afternoon. The convener of the meeting of both the GoMs will be Bihar Deputy Chief Minister Samrat Chaudhary.
When will the report have to be submitted?
The 12-member Group of Ministers on insurance is meeting for the first time. This group of ministers has to submit its report by October 30, so concrete recommendations are likely to come out in Saturday's meeting. The committee has been asked to examine and review the current tax structure of GST on life and medical insurance.

It has to suggest GST rates on health/medical insurance including individual, group, family floater and other medical covers for different categories like senior citizens, middle class, persons with mental illness etc. It has also been asked to suggest rates on term insurance, life insurance with investment plans, whether individual or group and life insurance including reinsurance.

Currently, the GST rate on premiums for health insurance, term insurance plans and unit-linked insurance plans is 18 per cent. GST is applicable differently on endowment plans. It is 4.5 per cent for premiums paid during the first year. The rates are the same for all age groups and can be reviewed based on the recommendation of the GST Council.