Jul 31, 2024 03:21 PM IST
Both life and medical insurance premiums attract a GST of 18 percent.
Road, transport and highways minister Nitin Gadkari wrote to finance minister Nirmala Sitharaman seeking withdrawal of 18% Goods and Services Tax (GST) on life and medical insurance premiums. Nitin Gadkari said that the GST amounts to taxing the uncertainties of life and restricts sector’s growth. Both life and medical insurance premiums attract a GST of 18 percent.
“You are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for the senior citizens,” Nitin Gadkari wrote.
Nitn Gadkari said the union that met him raised points related to differential treatment to savings by way of life insurance, re-introduction of IT deduction for health insurance premium and consolidation of public and sector general insurance companies.
“Similarly, the 18 percent GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary,” he added.
He continued, “Levying GST on life insurance premium amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life’s uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk.”
This also points to “differential treatment of savings by way of life insurance, reintroduction of income tax deduction for health insurance premiums and consolidation of public sector general insurance companies”, the minister said.