The proposal to remove GST on health and life insurance premium has gone to the Rate Rationalization Committee. But, the committee members are not in favor of removing the entire GST.
There is a relief news for the common man. The 18 percent tax on health and life insurance premium may be reduced. According to the news quoted by CNBC Awaaz, now the GST rate on health and life insurance premium may be reduced from 18 to 5 percent. A few days ago, Union Minister Nitin Gadkari had demanded the removal of GST on health and life insurance premium. He also wrote a letter to Finance Minister Nirmala Sitharaman for this.
This proposal related to the removal of GST on health and life insurance premium has gone to the Rate Rationalization Committee. However, the committee members are not in favor of removing the entire GST. But, there is a possibility of reducing it to 5 percent. A decision may be taken on this in the meeting of GST Committee Members on August 22.
Union Road Transport and Highways Minister, Nitin Gadkari had said that life insurance and health insurance are the need of every person today and are socially important. In such a situation, it does not seem right to impose GST on these products. In his letter to Finance Minister Nirmala Sitharaman on July 28, he said, “You are requested to consider the suggestion of removing GST on life and health insurance premium on priority.”
Insurance industry also in favor of removing GST At the same time, experts associated with the insurance industry also believe that it is not right to impose 18% GST on life and health insurance premium. Because of this, people shy away from buying insurance. The high rate of GST on health and life insurance premium disappoints the common people. Let us tell you that in the last 3 years, the government has got a revenue of Rs 24,529.14 crore from the GST imposed on health insurance premium and re-insurance premium.
