The agenda documents accessed from the GST council show that the fitment committee recommended “no change” to the request to remove the GST on life and health insurance. There is an 18% GST imposed on life and health insurance currently.
The GST at present is of three types. The first is the GST on Insurance Risk premium, the second is GST is collected on late fee and delayed loan interest paid due to a delay in payment of premium and interest on time. Third is the GST imposed on annuity policies which don’t contain any risk premium. GST is not collected on investment in banks, post office savings schemes, etc.