Opposition slams government over 18% GST on life and health insurance

Sources in the TMC said that its MPs have raised the issue in Parliament and their party chief, WB CM Mamata Banerjee, has written to FM Nirmala Sitharaman on the matter

The INDIA bloc parties are set to stage a protest in the Parliament complex on Tuesday to press for the rollback of 18 per cent GST on life and health insurance premiums.

Sources in the Trinamool Congress said that its MPs have raised the issue in Parliament and their party chief, West Bengal Chief Minister Mamata Banerjee, has written to Finance Minister Nirmala Sitharaman on the matter.

They also pointed out that Union minister Nitin Gadkari also wrote to Sitharaman and urged her to consider withdrawing the GST which, he said, amounted to taxing uncertainties of life and restricting the industry's growth.

In a written reply to a question by TMC’s Mala Roy on Monday, MoS Finance Pankaj Chaudhary replied that certain insurance schemes catering to the poorer sections and differently abled are exempt from 18 per cent GST. These schemes are the Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy and Niramaya Health Insurance Scheme.

The Minister said exemptions are prescribed on the recommendations of the GST Council, which is a constitutional body, comprising representatives from the Centre and the states and union territories. He said representations have been received requesting for exemption or reduction in the rate of GST on life and health insurance.

According to the minister’s reply, the GST collection from health insurance premium and life insurance premium for FY24 was Rs 8262.94 crore and Rs 1484.36 crore respectively. It was Rs 5354.28 crore and Rs 825.95 crore respectively in FY22, which increased to Rs 7638.33 crore and Rs 963.28 crore in FY23.