SBI Life shares went down by 3.3% to Rs 1,839.50 and the shares of HDFC Life tumbled 3% to Rs 714.20. Star Health and Allied Insurance Company’s shares fell 1.4% to a day’s low of Rs 618.
The 54th GST Council meeting was expected to bring relief to individuals and senior citizens with a significant decision on the Goods and Services Tax (GST) rate applied to health insurance premiums. The current GST rate on health and life insurance policies stands at 18%.
However, the decision was postponed to the November meeting and the GST Council in its 54th GST council meeting has decided to form a Group of Ministers (GoM) to look into the issues pertaining to GST on life insurance and health insurance.
GoM members are Bihar, UP, West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat.
The Fitment Committee, comprising the Centre and state tax officials, on Monday presented a report giving data and analysis and implications of GST reduction on life, health and reinsurance premiums. The same had also convened on Sunday to weigh the pros and cons of reducing the GST rate on health premiums.Also read: Bikaji Foods, Gopal Snacks, Prataap Snacks shares surge up to 8.5% after GST cuts on namkeen
West Bengal Finance Minister Chandrima Bhattacharya had already submitted a request to reduce the 18% GST rate on life and health insurance premiums. Bihar Deputy Chief Minister Samrat Chaudhary, who leads the reconstituted Group of Ministers on GST for rate rationalisation, acknowledged last month that changes to health insurance tax rates are under review.
The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state finance ministers, is responsible for determining the tax rate adjustments.
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