The demand to reduce GST in life insurance and health insurance has been rising for a long time.
New Delhi: The central government has taken a step forward in exempt the Goods and Services Tax (GST) on life insurance and health insurance, following the demand of Chief Minister of West Bengal Mamata Banerjee. According to news agency sources, the Group of Ministers (GoM) on GST, formed by Union Finance Minister Nirmala Sitharaman herself, reached a consensus on this matter. According to sources, the cabinet has decided to exempt GST on health insurance coverage of Rs 5 lakh for customers other than senior citizens. However, 18 percent GST will be applicable on health insurance with coverage above Rs 5 lakh. On the other hand, there is currently 18 percent GST on life insurance term policies and family floater policies. It is said that the matter of reducing or exempt it was discussed in the meeting. The GoM will submit this report to the GST Council by October 31. The report will be discussed at the next meeting of the GST Council, which is headed by the Union Finance Minister and comprises the Finance Ministers of the states. Before that, it is said that the GoM will hold one more discussion to finalize the report.
Today, Mamata said, “Our sustained efforts appear to be paying dividends – the Central Government looks like being further pressurised towards finally succumbing to our demands to withdraw/ modify the unjust 18% GST on health and life insurance products/policies. I had personally written to the Union Finance Minister (see the letter below), warning how their decision to keep 18% GST on health and medical insurances would deter vulnerable individuals from securing or maintaining their insurance coverage. Now, the reported rollback move suggested by the Group of Ministers of the GST Council today is significant, though it is not coming out of goodwill. It is coming because of the relentless pressure from our side. Our leaders have stood firm against anti-people policies that would harm the common people. Our MPs have been fighting, and our Finance Minister fought very well in the Group of Ministers today.'
The demand to reduce GST in life insurance and health insurance has been rising for a long time. After the last Lok Sabha elections, Chief Minister Mamata Banerjee wrote to Finance Minister Nirmala Sitharaman demanding withdrawal of GST in life and health insurance. There she writes, “The main purpose of life insurance and health insurance is to help people financially during difficult times like illness, accident, and death. These insurances come to the aid of bereaved or families in danger during difficult times. But imposing GST on insurance in this way is increasing the burden on citizens.” The Chief Minister said that many people are not looking to take new insurance policies due to the GST policy of the Centre. As a result, financial problems are faced during times of danger. Chief Minister's clear statement, this anti-people decision to implement GST on insurance should be withdrawn. In the letter, Mamata wrote, “I hope you will take necessary steps to withdraw this decision. So that more people can take advantage of this insurance.” The central government is on the way to implement the letter within a few months. So far only the West Bengal Chief Minister has written to the Center demanding withdrawal of GST on insurance. In this situation, a 13-member cabinet was formed in September this year.
State Finance Minister Chandrima Bhattacharya today said in Delhi, "The report with recommendations of the Central Government's Group of Ministers on reducing the GST rate on life insurance term policies and medical insurance premiums has been submitted. The committee headed by Bihar Deputy Chief Minister Samrat Chaudhary had representatives from 13 states including Uttar Pradesh, West Bengal, Punjab, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Rajasthan. The report was asked to be submitted by October 31. It was deposited on Saturday itself. Today, Mamata wrote on X handle, 'The final decision of GST Council, if it finally relents, will bring much-needed relief to millions of families across the country. We remain committed to putting the people's interests at the forefront of every decision. We however anxiously wait to see the final shape and conditions of the eventual decision of GST Council and we remain sentinels of people!'
This GoM is headed by Deputy Chief Minister of Bihar Samrat Choudhary. He said, “Every member of the cabinet wants to give relief to our people. We are paying more attention to senior citizens. The final report will be submitted to the GST Council. After that the council will decide.” Notably, currently 18 percent GST is levied on life insurance and health insurance premiums. According to market experts, the government's decision to impose 18 per cent GST on life insurance and health insurance in a country where medical expenses have increased is the name of the anti-people decision. As a result, it becomes more difficult for people to get medical services. Meanwhile, estimates say that if GST is removed from life insurance and health insurance, the government exchequer will lose about Rs. 200 crore in revenue annually. However, according to a section of experts, the country's economy will ultimately benefit if more people are brought under life insurance and health insurance due to the removal of GST.
New Delhi: The central government has taken a step forward in exempt the Goods and Services Tax (GST) on life insurance and health insurance, following the demand of Chief Minister of West Bengal Mamata Banerjee. According to news agency sources, the Group of Ministers (GoM) on GST, formed by Union Finance Minister Nirmala Sitharaman herself, reached a consensus on this matter. According to sources, the cabinet has decided to exempt GST on health insurance coverage of Rs 5 lakh for customers other than senior citizens. However, 18 percent GST will be applicable on health insurance with coverage above Rs 5 lakh. On the other hand, there is currently 18 percent GST on life insurance term policies and family floater policies. It is said that the matter of reducing or exempt it was discussed in the meeting. The GoM will submit this report to the GST Council by October 31. The report will be discussed at the next meeting of the GST Council, which is headed by the Union Finance Minister and comprises the Finance Ministers of the states. Before that, it is said that the GoM will hold one more discussion to finalize the report.
Today, Mamata said, “Our sustained efforts appear to be paying dividends – the Central Government looks like being further pressurised towards finally succumbing to our demands to withdraw/ modify the unjust 18% GST on health and life insurance products/policies. I had personally written to the Union Finance Minister (see the letter below), warning how their decision to keep 18% GST on health and medical insurances would deter vulnerable individuals from securing or maintaining their insurance coverage. Now, the reported rollback move suggested by the Group of Ministers of the GST Council today is significant, though it is not coming out of goodwill. It is coming because of the relentless pressure from our side. Our leaders have stood firm against anti-people policies that would harm the common people. Our MPs have been fighting, and our Finance Minister fought very well in the Group of Ministers today.'
The demand to reduce GST in life insurance and health insurance has been rising for a long time. After the last Lok Sabha elections, Chief Minister Mamata Banerjee wrote to Finance Minister Nirmala Sitharaman demanding withdrawal of GST in life and health insurance. There she writes, “The main purpose of life insurance and health insurance is to help people financially during difficult times like illness, accident, and death. These insurances come to the aid of bereaved or families in danger during difficult times. But imposing GST on insurance in this way is increasing the burden on citizens.” The Chief Minister said that many people are not looking to take new insurance policies due to the GST policy of the Centre. As a result, financial problems are faced during times of danger. Chief Minister's clear statement, this anti-people decision to implement GST on insurance should be withdrawn. In the letter, Mamata wrote, “I hope you will take necessary steps to withdraw this decision. So that more people can take advantage of this insurance.” The central government is on the way to implement the letter within a few months. So far only the West Bengal Chief Minister has written to the Center demanding withdrawal of GST on insurance. In this situation, a 13-member cabinet was formed in September this year.
State Finance Minister Chandrima Bhattacharya today said in Delhi, "The report with recommendations of the Central Government's Group of Ministers on reducing the GST rate on life insurance term policies and medical insurance premiums has been submitted. The committee headed by Bihar Deputy Chief Minister Samrat Chaudhary had representatives from 13 states including Uttar Pradesh, West Bengal, Punjab, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Rajasthan. The report was asked to be submitted by October 31. It was deposited on Saturday itself. Today, Mamata wrote on X handle, 'The final decision of GST Council, if it finally relents, will bring much-needed relief to millions of families across the country. We remain committed to putting the people's interests at the forefront of every decision. We however anxiously wait to see the final shape and conditions of the eventual decision of GST Council and we remain sentinels of people!'
This GoM is headed by Deputy Chief Minister of Bihar Samrat Choudhary. He said, “Every member of the cabinet wants to give relief to our people. We are paying more attention to senior citizens. The final report will be submitted to the GST Council. After that the council will decide.” Notably, currently 18 percent GST is levied on life insurance and health insurance premiums. According to market experts, the government's decision to impose 18 per cent GST on life insurance and health insurance in a country where medical expenses have increased is the name of the anti-people decision. As a result, it becomes more difficult for people to get medical services. Meanwhile, estimates say that if GST is removed from life insurance and health insurance, the government exchequer will lose about Rs. 200 crore in revenue annually. However, according to a section of experts, the country's economy will ultimately benefit if more people are brought under life insurance and health insurance due to the removal of GST.
Post a Comment