GST on Health and Life Insurance Premiums

The proposal to exempt GST on health and life insurance premiums is well-intentioned, aiming to lower costs and increase coverage. However, outright exemption introduces hidden tax costs by denying ITC, which dilutes consumer benefits and disrupts GST’s credit chain. A zero-rated model would maximize affordability but carries fiscal risks due to ITC refunds. A 5% concessional rate emerges as the most balanced solution—it lowers premiums, preserves ITC flow, minimizes market distortion, and ensures steady revenue to the exchequer. Please do go through the snapshot of the three models released by J the App by JustIDT. Would be amazing to hear your thoughts on the subject.