The 57th GST Council meeting has recommended changes to the provisions governing input tax credit (ITC), including the removal of restrictions on ITC for health and life insurance services.
According to the Ministry of Finance’s press release dated October 8, 2026, the Council recommended amendments to Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017, to remove restrictions on input tax credit for several categories, including outdoor catering, health and life insurance, telecommunications towers, pipelines laid outside factory premises, and certain other supplies.
The proposed changes aim to reduce the cascading effect of taxes and facilitate a smoother flow of input tax credit across the supply chain.
The recommendation could be relevant to businesses dealing with health and life insurance services. However, the precise impact on insurers, healthcare providers and policyholders will depend on the scope and implementation of the proposed amendments.
The Council’s recommendations will be given effect through the relevant notifications, circulars and legislative amendments. The recommendations alone do not have the force of law.
