New Delhi: GST on individual life and health insurance policies is likely to be exempt soon as states on Wednesday favoured the Centre’s proposal to bring tax on such premium payments to ‘nil’ from the current 18 per cent. Groups of Ministers (GoMs) on Health and Life Insurance, and Compensation Cess met on Wednesday to discuss the Centre’s proposal of ‘next-gen’ GST reforms, aiming at two tax rates of 5 per cent and 18 per cent, along with a special 40 per cent rate on 5-7 items, including sin goods.

Ahead of the GoM meetings, Union Finance Minister Nirmala Sitharaman, in her address, talked about the GST reform proposal. She said that the reform would be in the direction of making India Atmanirbhar. Speaking with reporters after the meeting of the GoM on health and life insurance, Bihar Deputy Chief Minister Samrat Choudhary, who is also the convenor of the panel, said that all states have agreed to the Centre’s proposal for a reduction in tax rate on individual life and health insurance policies, with some expressing reservations.

“The Centre’s proposal is clear that individual insurance policies should be exempt from GST. This has been discussed by the GoM which will present its report to the Council. A final........

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