HDFC Life Shares Steady as GST GoM Backs Tax Exemption on Life, Health Insurance Premium; GST Meeting Today

HDFC Life Insurance shares traded flat on Thursday, August 21, despite renewed optimism following reports that the GST Council's Group of Ministers (GoM) has recommended exempting individual life and health insurance premiums from the Goods and Services Tax (GST). This move, if approved, could significantly reduce the cost burden on policyholders and boost the insurance sector.

HDFC Life Share Price Today

As of 12:52 PM, shares of HDFC Life Insurance Company Ltd were trading at Rs 796.55, showing no change from the previous session. The stock opened the day at Rs 792.50, touched an intraday high of Rs 807.00 and fell to a low of Rs 791.40, indicating a narrow trading range during the session. Over the past 52 weeks, the stock has recorded a high of Rs 820.75 and a low of Rs 584.30.

GST Council GoM Recommends Tax Exemption

According to media reports, the GST GoM has supported a proposal to remove the current 18% GST applied to individual life and health insurance premiums. This recommendation will now go to the GST Council for final approval after consultations with the states.

Bihar Deputy Chief Minister Samrat Choudhary, who also serves as the GoM Convenor, confirmed that the panel has endorsed the Centre's recommendation to fully exempt these insurance premiums from GST.

GST Revenue from Insurance Sector

This proposal is part of a broader GST reform initiative aimed at simplifying the tax structure. The suggested changes include applying GST at two distinct rates, 5% for merit goods and 18% for standard goods-based on the category of the product or service. The GoM, which includes representatives from states such as Uttar Pradesh, Karnataka, Tamil Nadu, and West Bengal, is expected to submit its final report by the end of October.

In the fiscal year 2023-24, the government collected Rs 8,262.94 crore in GST from health insurance premiums and an additional Rs 1,484.36 crore from health reinsurance. The Centre now believes that exempting individual life and health policies is a necessary step to make insurance more accessible to the public.