No final decision was made on the proposal to cut goods and services tax (GST) rates on life and health insurance during the Group of Ministers (GoM) meeting held on September 25, sources said.

"Issues were discussed but nothing was finalised in today’s meeting. The next GST GoM meet will happen on October 19 in New Delhi. An issue such as the GST rate cut on insurance cannot be decided in one meeting," a source told Moneycontrol.

"During the October 19 meeting, the GoM will deliberate upon insurance-related matters for senior citizens, life insurance, term life insurance, group insurance, etc.," the person said. The discussion will also cover the potential introduction of medical insurance solely for senior citizens and whether selective exemptions would complicate implementation.

The GoM, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is expected to finalise its recommendations during the October 19 meeting, with the report likely to be submitted to the GST Council by the end of October. The Council is expected to deliberate on these recommendations in its meeting in November.

The next GST Council meeting, slated for November, will take up the GoM's recommendations, as earlier confirmed by Finance Minister Nirmala Sitharaman, who indicated that the Council will assess the possibility of lowering GST rates on health and life insurance.

In its previous meeting on August 22, the six-member GoM, which also includes finance ministers from states such as West Bengal, Karnataka, Uttar Pradesh, and Kerala, had submitted a status report on GST rate rationalisation.

There has been no decision on merger of slabs in the GoM so far as some states, including West Bengal and Karnataka, are opposed to changes to the existing GST slab structure.

West Bengal Finance Minister Chandrima Bhattacharya had previously expressed, "I have said there should be no changes in the GST slab." Karnataka Revenue Minister Krishna Byre Gowda echoed this sentiment, noting that, "The GoM has to analyse whether there is a need to disturb the GST system, which has now broadly stabilised."

At present, the GST structure consists of four rate slabs: 5, 12, 18, and 28 percent. Essential items are either exempted or taxed at the lowest rates, while luxury goods attract the highest tax, including additional cess. However, with the average GST rate dipping below the revenue-neutral rate of 15.3 percent, discussions on rate rationalisation are underway.