Proposal made for tax exemptions on health and life insurance in India

The panel of Indian state ministers responsible for goods and services tax (GST) matters has put forward a proposal to exempt tax on health and life insurance premiums for individuals. This proposal comes after a meeting of the panel and follows Prime Minister Narendra Modi's announcement of sweeping cuts to the GST to boost India's economy.

Currently, the GST rate for health and life insurance premiums stands at 18%, and the proposal suggests exempting these premiums from this tax. The GST council, chaired by the federal finance minister, is expected to take the final decision on the proposal.

The proposal is significant as it could lead to a major overhaul of the tax regime, which was introduced in 2017. If implemented, health and life insurance premiums for individuals would no longer be subject to the 18% tax.

However, the panel expects a revenue loss of 97 billion rupees ($1.11 billion) if the proposal is approved. Mallu Bhatti Vikramarka, a minister from the southern state of Telangana, made this statement.

The next GST council meeting, where the final decision on the proposal will be made, is scheduled for September or October. The meeting will take place in New Delhi and is expected to involve a significant overhaul of the tax regime, as per expectations.

It is important to note that the paragraph does not provide information about who made the statement regarding the overhaul of the tax regime or any details about negotiations regarding major reforms to the GST system since its introduction in 2017. Furthermore, there are no relevant search results providing information about the minister expected at the next GST council meeting.

The current GST rate for health and life insurance premiums is 18%, and the proposal aims to exempt these premiums from this tax. The final decision on the proposal will be taken by the GST council, and if approved, it could lead to a significant change in the tax structure for individuals in India. The meeting will take place before the Hindu festival of Diwali, which is India's biggest shopping season.