Kathmandu. The Government of India has given great relief to its people. The Goods and Services Tax (GST Council) announced in its meeting on Wednesday that personal health and life insurance will be completely exempted from GST.
This decision of the Council is considered a historic step towards making insurance protection more accessible and affordable for millions of citizens of India by making insurance premiums cheaper.
Addressing a press conference after the meeting, Finance Minister Nirmala Sitharaman said that from now on, all personal health and life insurance policies will not be subject to GST. “So far, 18 per cent tax on insurance premium will be abolished,” she said.
This decision is in full line with the Central Government of India’s vision of ‘Insurance for All by 2047’. The government of India aims to provide insurance cover to every citizen of the country and this step is a big boost in that direction.
The insurance premium will now be 18 percent cheaper than before. Due to being cheap, many people will come forward to buy health and life insurance. In addition, access to insurance will increase in rural and low-income groups. This will reduce dependence on health spending and increase financial security.
