Health insurance stocks rallied on December 3 as the Group of Ministers (GoM) on GST rate rationalization, led by Bihar Deputy Chief Minister Samrat Chaudhary, recommended significant tax cuts for the sector:
- GST Reduction: Proposed to cut GST on health insurance premiums from 18% to 5%.
- Senior Citizens: Recommended GST exemption on premiums for senior citizens.
- Non-Senior Citizens: Suggested GST exemption for premiums up to ₹5 lakh annually.
- Term Life Insurance: Advocated for removing GST on pure term life insurance premiums.
The GST Council will review these proposals during its December 21 meeting in Jaisalmer. The announcements boosted health insurance stocks, with Niva Bupa surging over 11% and Star Health gaining 2%.
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