A big meeting of the GST Council is going to be held on Monday, September 9, 2024. It is believed that in this meeting a decision can be taken regarding GST on health insurance.
GST on Health Insurance: A big meeting of the Goods and Services Tax (GST) Council is going to be held on Monday, September 9, 2024. It is believed that in this meeting a decision can be taken regarding GST on health insurance. If sources are to be believed, the Fitment Committee is not in favor of giving complete GST exemption on premium. However, some suggestions have been given to the Council by the Committee and the final decision has been left to the Council.
Let us tell you that the Fitment Committee includes revenue officers of both the Central and State Governments. At present, the committee has given some options to the Council and left the decision to it. Along with this, it has also been told that what kind of impact can be seen on the revenue on choosing those options. If sources are to be believed, tax cuts are being considered in any one of the four ways on health insurance. The fitment committee believes that the cuts should be made only when the life insurance company gives benefits to the insured. It is being told that the council can consider giving rate cuts in life insurance only for term and re-insurance.
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Nitin Gadkari has also made this demand
Let us tell you that Union Road and Transport Minister Nitin Gadkari has urged the government to withdraw GST on insurance. West Bengal CM Mamata Banerjee has also reiterated this demand and demanded relief to the common man. Let us tell you that GST is an indirect tax. GST, implemented on 1 July 2017 during the first term of the Modi government, has brought about a major change in the country’s tax system. Since its introduction, a single tax is imposed in place of different taxes across the country.
Before the implementation of GST, 15% tax was levied on term or life insurance and medical insurance. But after the implementation of GST, it increased by 3% and GST started being levied on these insurances at the rate of 18%. The increase in tax by 3% had a direct impact on the premium of insurance policies and its prices increased. However, arguments are given in favour of GST by talking about the facility of tax exemption in this regard.
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