Insurance cost will come down if GST is reduced: Sitharaman
Financial Express Mumbai|December 03, 2024
The cost of health and life insurance policies to policyholders is expected to come down if the Goods and Services Tax (GST) Council recommends a reduction in the tax rate, finance minister Nirmala Sitharaman informed Parliament on Monday.
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"As the GST rates are applicable over and above the insurance premium, if the GST rate is reduced, it is expected to benefit the policyholder directly, especially in a competitive market with many insurers as the cost of insurance (health & life) will reduce to that extent," Sitharaman said. Currently, an 18% GST is levied on premiums paid for life and health insurance policies.

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