GST On Health Insurance Premium: Govt Collects Rs 8,263 Cr In FY24 – News18
Since its inception, GST @18 per cent rate is levied on premiums paid towards health insurance. (Representative image)
The government has collected Rs 8,263 crore towards GST on health insurance premium in 202324 fiscal year
The government has collected Rs 8,263 crore towards GST on health insurance premium in 2023-24 fiscal year, Parliament was informed on Monday.
The Minister of State for Finance Pankaj Chaudhary said the government has received representations requesting for exemption or reduction in the rate of GST on life insurance and health insurance.
Since its inception, GST @18 per cent rate is levied on premiums paid towards health insurance, the Minister of State said in a written reply in the Lok Sabha.
However, certain insurance schemes catering to poor sections of the society and differently-abled, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy and Niramaya Health Insurance Scheme are exempt from Goods and Services Tax (GST).
In 2023-24, the GST collection from health insurance premium stood at Rs 8,262.94 crore, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium.
In the 2022-23 fiscal, Rs 7,638 crore GST was mopped up from health insurance premium, and another Rs 963 crore from health reinsurance premium.
In the 2021-22 financial year, GST of Rs 5,354 crore was mobilised from health insurance premium, while Rs 826 crore came in from health reinsurance premium.
In reply to a separate question, Chaudhary said after the introduction of GST with effect from July 1, 2017, GST is leviable on life insurance and health insurance services.
To a question on whether there is a demand from the industry for withdrawal of service tax, Chaudhary said “representations have been received requesting for exemption or reduction in the rate of GST on life insurance and health insurance”.
GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a constitutional body comprising representatives from both the Centre and the States/UTs, he added.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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