Recommendations from the Group of Ministers (GoM) on Goods and Services Tax (GST) for life and health insurance will be presented to the GST Council once finalised, Parliament was informed on Monday.
The issue of reducing or exempting GST on life and health insurance was discussed during the GST Council’s 54th meeting on 9 September 2024. Following detailed deliberations, the Council recommended forming a GoM to examine the matter comprehensively.
The GoM, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, convened its first meeting on 19 October 2024 in New Delhi to discuss GST rates on health and life insurance policies. "Recommendations of the GoM, once received, will be placed before the GST Council," Minister of State for Finance Pankaj Chaudhary stated in a written reply to the Lok Sabha.
Currently, GST on health insurance and pure term life insurance services is levied at the standard rate of 18%. GST rates and exemptions on services, including insurance, are decided based on recommendations from the GST Council, a constitutional body comprising members from both Union and state/UT governments.
Revenue collection
Chaudhary also revealed that revenue from GST on healthcare and life insurance services reached ₹8,263 crore and ₹8,135 crore, respectively, in the 2023-24 fiscal year. These figures compared to ₹7,638 crore and ₹9,132 crore in the preceding financial year.
Forex reserves and gold holdings
In response to a separate question on foreign exchange reserves, Chaudhary reported that the Reserve Bank of India held 854.73 metric tonnes of gold as of the end of September 2024, with 510.46 metric tonnes stored domestically.
The total value of India’s gold holdings stood at USD 65.75 billion at the same time. According to data from the International Monetary Fund (IMF), India ranked as the world’s fourth-largest holder of foreign exchange reserves, following China, Japan, and Switzerland.
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