Your health insurance premiums may soon become cheaper
What's the story
The Group of Ministers (GoM) panel on Goods and Services Tax (GST) has reached a consensus, on some major exemptions pertaining to life and health insurance, as per Moneycontrol. The group has proposed a full GST exemption for senior citizens availing health insurance. Further, it has suggested that health insurance policies providing coverage of up to ₹5 lakh should be exempted from GST.
Report submission
GoM to submit report on proposed exemptions by October 31
The GoM will submit a report with these proposals to the GST Council by October 31. There could be another meeting called before the deadline, to finalize the details of the report. This is done to ensure that all recommendations are discussed in detail, before being submitted for the Council's consideration.
Relief
Tax on packaged drinking water to be lowered
The GoM has also proposed to lower tax rates on 20-liter packaged drinking water bottles, exercise notebooks, and bicycles to 5%. The rate rejig, if done, would lead to a revenue gain of ₹22,000 crore.