The government will soon bring a proposal before the GST Council to reduce tax on the premium being paid by vehicle owners for buying third party (TP) insurance. Currently, the GST on third party premium is 18% and it’s mandatory for every vehicle owner to buy the TP insurance. A reduction is expected to ease the burden on consumers.
TOI has learnt that the issue of high GST on premium came up for discussion at a meeting at Prime Minister’s Office.