On this Independence Day, from the ramparts of the Red Fort, Prime Minister Narendra Modi announced the next generation of GST reforms. His vision was realised on the 3rd of this month, when the GST Council reduced tax rates in many sectors to ease the lives of citizens.

 

 

Union Finance Minister Nirmala Sitharaman on the 3rd of this month announced the decisions of the 56th GST council meeting. A significant highlight of the announcement was the tax cut on health insurance premiums.

 

 

Now all health insurance premiums, which till recently attracted 18 per cent GST, will be fully exempted from any tax from the 22nd of this month. Now the insured will pay an amount which would simply be the base premium. The reform will particularly be beneficial for seniors and retirees, who often hesitate to take health insurance due to high premiums. The change is also expected to increase insurance penetration across the country, providing financial security for families and individuals.

 

 

Talking to the media, Hemant Rai Singhani, a resident of Bengaluru, said that the simplification of tax slabs under the recently announced GST reforms will benefit the ordinary citizens.  

 

 

The tax cut is expected to make premiums cheaper for middle-class families and encourage wider adoption of health insurance, reducing out-of-pocket medical expenses.