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HomeCentral GovernmentGST collected from Health & Life Insurance : Whopping Rs.24,500 in over...

GST collected from Health & Life Insurance : Whopping Rs.24,500 in over 3 years

New Delhi: In the last three years as per the data shared by Finance Ministry the Union government has collected a whopping over ₹24,500 crore through GST on health insurance and reinsurance premium. GST on health insurance and re-insurance premium is 18 per cent. However, schemes such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Argoya Bima Policy and Niramaya Health Insurance Scheme do not attract GST. In a written response, Minister of State in the Finance Ministry Pankaj Chaudhary presented the collection data which showed that GST collection (cash) from health insurance premium from FY22 to FY24 was over ₹21,000 crore, while that from health reinsurance premium was around ₹1,500 crore. While an individual pays GST for health insurance, companies pay for health re-insurance. In both situations, companies deposit the balance — after deducting input tax credit from total tax dues — which is referred to as ‘cash’.

READ ALSO : Opposition Leaders demand lowering of 18% GST on Health & Life Insurance Policies

This data has been made public at a time when Road Transport Minister Nitin Gadkari and West Bengal Chief Minister Mamata Banerjee have written to the Finance Minister Nirmala Sitharaman advocating for the removal of GST on not just health insurance but also life insurance. The issue has generated political heat, with the Trinamool Congress (TMC) and DMK pressing the demand in the Lok Sabha and staging a walkout last week. Any change or withdrawal of GST on a good or service can be recommended by GST Council following which Centre and State Governments issue notifications. It is believed that this issue will also be taken by the Group of State Ministers assigned to suggest ways for GST rate rationalisation.