Why a GST cut alone may not be enough to lower insurance premiums

Finance Minister Nirmala Sitharaman recently highlighted the possibility of reduced costs for health and life insurance policies if the GST Council recommends a reduction in the GST rates for these sectors. In her written reply to the Lok Sabha, she shared that the Council had proposed forming a Group of Ministers (GoM) to comprehensively review GST rates on life and health insurance. If the GoM s…