Lowering GST to 12% on health insurance premiums up to Rs 30,000 for affordability

• Centre may push for lower GST tax rate of 12% on health insurance premiums up to Rs 30,000
• Premium up to Rs 30,000 could buy health insurance sum insured around Rs 10 lakh/annum for a family of four
• Reduction in tax rate could lead to lower premium rates or additional health cover options
• Proposal to be taken up after general elections in GST Council
• Parliamentary Standing Committee on Finance recommended rationalizing 18% GST rate on insurance products
• Person must pay 18% GST when buying health insurance policy post-GST rollout
• Niti Aayog report recommended extending PMJAY scheme to ‘missing middle’ on a paid basis
• PMJAY offers Rs 5-lakh-a-year free health cover to 107 million poor households

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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