The Finance Ministry has stated that certain government-backed health and life insurance schemes are exempt from Goods and Services Tax (GST), but there are no current plans to extend this exemption to all policies.

Minister of State for Finance, Pankaj Chaudhary, confirmed that schemes like the Rashtriya Swasthya Bima Yojana and Ayushman Bharat PM-JAY, as well as life insurance under the Pradhan Mantri Jeevan Jyoti Bima Yojana, are already exempt from GST.

Discussions on expanding GST exemptions for health and life insurance products were held during the 54th GST Council meeting in September. A Group of Ministers, led by Bihar's Deputy Chief Minister Samrat Chaudhary, has been formed to assess the broader implications of GST on these sectors. The Group's first meeting took place on October 19, 2024, in New Delhi, with a focus on the GST implications for health and life insurance policies. The recommendations from this Group will be reviewed by the GST Council once they are submitted.