Who got what in the budget?
The issue of GST on health insurance premiums has been a hot topic for a long time. Now there is only one day left for this to stop. The GST Council meeting will be held on Monday, i.e. on September 9. After this meeting it will become clear whether there will be an exemption from GST on health insurance premiums or not.
If GST rates on health insurance premiums are reduced or removed, health insurance will be affordable for millions of people in the country. But on the other hand, this will also affect the government’s revenue. In such a situation, everyone is eagerly waiting to see what decision the GST Council will take in this meeting.
The adaptation committee gave options to the council
There is an adaptation committee under the GST Council itself. The change in GST rates on health insurance premiums has been under discussion in this committee for a long time. Tax officials from the central and state governments also participate in this committee. The committee has submitted many suggestions to the GST Council, though the final decision is in the hands of the Council.
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Currently, policyholders have to pay 18 percent GST on health insurance premium. While the government is demanding that GST be scrapped or this rate be reduced to 5%.
Gadkari appealed to remove GST rates
Union Minister Nitin Gadkari had requested Finance Minister Nirmala Sitharaman about a month ago to keep health insurance premiums out of the purview of GST. On Friday, September 6, the Karnataka government appealed to the Centre to reconsider the implementation of 18% GST on health insurance for policyholders from low and middle income groups.
West Bengal CM Mamata Banerjee has also requested the Council to provide relief to common people by removing GST.
Effort to provide benefits to policyholders
According to a report by the Times of India, a state finance minister said, “Officials are looking at options that can help policyholders. However, we are also concerned that insurance companies may pocket the profits and this will not benefit health insurance buyers.”
Another minister said that “at the meeting, the minister will try to come up with a formula that will reduce the burden on consumers and also ensure that the profits do not go into the pockets of companies.”
