The Government of India is expected to lose a significant sum if GST on health and life insurance is relaxed from 18 percent. It earned Rs 8,262.9 crore from GST on health insurance (excluding reinsurance). The revenue loss, if GST is reduced to 5 percent, will likely be in the vicinity of Rs 6,000 crore and to the tune of Rs 8,300 crore if the entire revenue is forgone.

But, it will likely boost coverage, which is low in India.

The GST council, earlier this week, referred the matter to the Group of Ministers to decide on the issue by October 31. The council's next meeting is scheduled in November, when it will take a call on the issue. Moneycontrol looks at the data in four charts:

How much will the government forego in GST?

India has lower insurance coverage

Insurance density is also low

Premiums per capita are a fifth of the global average