GST on term life insurance premium, senior citizen's health coverage likely to be exempt

The Group of Ministers (GoM) is likely to recommend exempting Goods and Services Tax (GST) on term life insurance premiums and health insurance premiums paid by senior citizens. During a recent meeting, the GoM decided to exempt GST for health insurance coverage up to Rs 5 lakh for individuals (excluding seniors), while premiums above this threshold will still attract 18% GST. Currently, 18% GST applies to life insurance premiums as well.