India's Next-Gen GST Reforms: Significant Steps for Economic Transformation

Finance Minister Nirmala Sitharaman proposed GST reforms to the Group of Ministers, aiming to exempt individual health and life insurance from GST. These reforms emphasize structural changes, rate rationalization, and improving ease of living, targeting affordability and boosting economic growth in alignment with Atmanirbhar Bharat vision.

Devdiscourse News Desk | Updated: 20-08-2025 18:58 IST | Created: 20-08-2025 18:58 IST

India's Next-Gen GST Reforms: Significant Steps for Economic Transformation — Finance Minister Nirmala Sitharaman addresses Group of Ministers (GoMs) constituted by GST Council (Image: X/@FinMinIndia). Image Credit: ANI

Country:
India

Finance Minister Nirmala Sitharaman addressed the Group of Ministers (GoMs) at Vigyan Bhawan, discussing proposed GST reforms crucial for India's economic transformation. A key proposal is granting exemptions to health and life insurance premiums from GST, a move supported by unanimous voices within the GoM.

The Telangana Deputy CM, Mallu Bhatti Vikramarka, confirmed the proposal, underlining its potential to alleviate financial burdens on individuals currently facing an 18% GST on such premiums. The Union Finance Minister highlighted that the reforms aim to propel India's journey toward becoming Atmanirbhar Bharat, with consensus-building a priority for the Central Government.

The proposed measures, discussed with state finance representatives, include structural reforms, rate rationalization, and easing of compliance to enhance affordability and accessibility. These reforms are part of a strategic vision set to be discussed further in the upcoming GST Council meeting, aligning with Prime Minister Modi's announcements on tax reform benefits before Diwali.

(With inputs from agencies.)