The Centre may push back against a proposal to give goods and services tax (GST) exemption for certain insurance policies, as it reckons that this would raise the cost of insurers, leading a firming up of premium amounts. However, it will strongly pitch for a major reduction in the GST rates for insurance sector. This view may be conveyed to the GST Council as it meets next. The Council is likely to consider the report of group of ministers (GoM), which reviewed taxation of health and life insurance premiums in its next session.