Finance Ministry issued Clarification on GST Exemption on Health and Life Insurance:

Finance Ministry issued Clarification on GST Exemption on Health and Life Insurance Pankaj Chaudhary, Minister of State for Finance, said in response to a question raised during the winter session of Parliament on Monday, "Although certain government-backed health and life insurance schemes are exempt from GST, there is no proposal to extend the exemption to all health and life insurance policies currently." According to Chaudhary, health insurance schemes aimed at economically disadvantaged groups, like the Rashtriya Swasthya Bima Yojana and Ayushman Bharat PM-JAY, as well as life insurance services provided by schemes like the Pradhan Mantri Jeevan Jyoti Bima Yojana, are currently exempt from GST. These exemptions also apply to completely government-sponsored schemes aimed at providing insurance to the most disadvantaged members of society. The idea of extending GST exemptions by including more health and life insurance products was considered during the 54th GST Council meeting in September. Following those discussions, a Group of Ministers led by Bihar deputy Chief Minister Samrat Chaudhary was formed to assess the GST's broader implications for these industries. The GST Council will consider the GoM's suggestions once they are submitted. "The initial meeting of the GoM was convened on October 19, 2024, in New Delhi, and the impact of GST on health and life insurance policies was discussed. When the GoM's suggestions are received, they will be presented to the GST Council," the response stated. The Insurance Regulatory and Development Authority of India has issued guidelines mandating insurers to address claims as soon as possible, the minister stated. IRDAI has also implemented a grievance redressal procedure, which is supported by the insurance ombudsman system, to assist policyholders in resolving problems. Furthermore, the government introduced the Ayushman Bharat scheme to give health coverage to poor families, which was expanded in 2024 to include senior citizens.