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IRDAI, DFS support proposal for lowering GST on health policies for senior citizens, micro-insurance and term insurance policies

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Ahead of the GST Council meeting, a proposal for rationalising GST on insurance premium got boost with the Financial Services Department and the Insurance Regulatory and Development Authority of India supporting the move.
The Insurance Regulatory and Development Authority of India (IRDAI) and the Department of Financial Services (DFS) have expressed support for a proposal to reduce the GST on health insurance policies for senior citizens, micro-insurance policies, and term insurance policies. This initiative aims to make insurance more affordable and accessible, particularly for vulnerable groups. The proposal suggests lowering the GST rate from 18% to 5% for these specific categories of insurance. This move is seen as a step towards enhancing financial inclusion and providing better social security for senior citizens and low-income groups. The proposal has been forwarded to the GST Council for consideration, highlighting the potential benefits of increased insurance penetration and financial protection for the underprivileged sections of society.

Read the Full Business Line Article at:
[ https://www.thehindubusinessline.com/economy/irdai-dfs-support-proposal-for-lowering-gst-on-health-policies-for-senior-citizens-micro-insurance-policies-term-insurance-policies/article68961494.ece ]