GST Council to Discuss Tax Relief on Health and Life Insurance Premiums during Pre-Budget Meeting

New Delhi: As the Union Budget 2025-26 preparations gain momentum, the GST Council is set to discuss tax relief on health and life insurance premiums during its meeting scheduled for December 23 and 24, sources revealed. The meeting has been rescheduled from November to coinciding with union finance minister Nirmala Sitharaman's pre-budget consultations with state counterparts.

During the session, key topics including food inflation, unemployment, rural job creation, and capex momentum are likely to be addressed along with pressing issues such as pricing of essentials like bicycles, exercise books, and large packs of packaged drinking water. The aim is to ease household expenses without affecting growth.

As part of these discussions, the GST Council is expected to provide relief on key insurance premiums for senior citizens, including exemptions from term life insurance premiums and health insurance premiums. This measure is aimed at reducing the financial burden on policyholders, particularly those above 60 years.

The proposed exemptions on term life insurance premiums are estimated to cause a revenue loss of around Rs 200 crore, which will be offset by changes in GST rates on other items such as luxury goods.

The discussions during the GST Council meeting would come into play with Nirmala Sitharaman's pre-budget consultations scheduled to take place from December-end. Both sets of meetings focus on driving growth while sustaining inflation and supporting rural job creation.