The 55th meeting of the GST Council will be held on December 21, 2024, in Jaisalmer, Rajasthan. Central Finance Minister Nirmala Sitharaman, along with state finance ministers, will attend the meeting. Originally, this meeting was expected to take place in November, but it has now been scheduled for December. In this meeting, state finance ministers will present their suggestions related to the next financial year’s budget, which will be presented in Parliament on February 1, 2025.
The meeting may include several important decisions, the most notable being a proposal to exempt GST on premiums for term life insurance policies. A committee of state ministers has already presented its report on this issue. In October 2024, a group of ministers on health and life insurance agreed to exempt GST on term life insurance premiums. Additionally, there may be a proposal to provide GST exemption on health insurance premiums for senior citizens.
It is also possible that health insurance premiums up to ₹5 lakh may be exempt from GST. However, premiums for policies with coverage above ₹5 lakh will continue to attract an 18% GST. These changes could stimulate the health and life insurance market, especially for individuals with minimal health coverage.
Union Minister Nitin Gadkari has also demanded a reduction in the 18% GST on health and life insurance premiums. On July 28, 2024, he wrote a letter to the finance minister, urging the removal of GST on life and medical insurance, calling it a “tax on life’s uncertainties.”
Shashi Rai
