The Goods & Services Tax (GST) Council on Saturday postponed a decision on cutting tax rate on life and health insurance premiums, officials said.

The 55th meeting of the GST Council, chaired by Union finance minister Nirmala Sitharaman and including her state counterparts, decided that some more technicalities needed to be ironed out and tasked the Group of Ministers (GoM) for further deliberations.

Bihar deputy chief minister Samrat Chaudhary said one more meeting of the GoM on insurance is required to take a call on taxation of group, individual, senior citizens' policies.

“Some members said more discussions required. We [GoM] will meet in January again,” Chaudhary told reporters.

A GOM set up by the GST Council under Chaudhary, in its meeting in November, had agreed on exempting insurance premiums paid for term life insurance policies from GST.

Premium paid by senior citizens towards health insurance cover has also been proposed to be exempted from the tax. Besides, premiums paid by individuals other than senior citizens for health insurance with coverage of up to Rs 5 lakh have been proposed to be exempt from GST.

However, 18 per cent GST will continue on premiums paid for policies with health insurance cover of over Rs 5 lakh.