No GST on Health Insurance Premiums Up to ₹5 Lakh Ministerial Group Agrees on 18% GST Exemption for Health Insurance Premiums

No GST on Health Insurance Premiums Up to ₹5 Lakh
Ministerial Group Agrees on 18% GST Exemption for Health Insurance Premiums
In a recent meeting, the ministerial panel agreed to provide an 18% GST exemption on health insurance premiums for policies up to ₹5 lakh, aimed at expanding affordable health coverage. The move is expected to help low- and middle-income families by reducing the premium cost of health insurance plans, particularly for seniors and economically weaker sections.
Lower Costs for Packaged Water Bottles
The panel has also recommended reducing the GST on large bottled water containers, such as 20-liter bottles, which are used widely in homes and offices. This reduction will provide relief to households and small businesses. However, a final decision on this will be taken in the next GST Council meeting.
Other Relief for Insurance
•    No GST will be applied to any form of term insurance premium.
•    Health insurance premiums for senior citizens will also be exempt from GST.
Details of the Proposed Relief
Currently, there is an 18% GST levied on health insurance premiums. By reducing or removing this tax, the government aims to make health insurance more accessible. This will affect around 23,400 policies and is expected to provide a financial cushion for policyholders.
The panel’s report is scheduled to be submitted to the GST Council by the end of this month for final consideration.