Deputy CM Bhatti Urges Reduction in GST on Insurance Premiums for Senior Citizens

Deputy Chief Minister Mallu Bhatti Vikramarka offered a GST exemption for health insurance premiums for senior citizens and for reduction or exemption on health insurance premiums based on the access to effective healthcare of their choice to ensure the middle and lower middle-class groups who have high medical expenditures.

In the 54th GST Council meeting the minister made such remarks, chaired by Nirmala Sitaraman, Union Finance Minister in New Delhi. Principal Secretary to Government (Revenue) S.A.M. Rizvi represented the State.

At the time of the discussion, various proposals have been made by Mr Vikramarka along with the exemption of GST on research grants or donations obtained from the government or private agencies, GST reduction from the current 18% rate to 5% on health insurance premiums for all age groups. He cited the government’s obligation to make health insurance cheap.

Mr. Bhatti has volunteered to be part of the Group of Ministers (GoM) tasked with studying the tax aspects of group and family policies. The GoM is expected to submit its recommendations within a month to discuss them and make appropriate decisions in the next GST Council meeting. The group will also examine the matter of granting exemptions or reducing GST on life insurance premiums.

Towards the dispute of compensation cess, Mr. Vikramarka noted that post releasing the loan amount it shall be pertinent to add the cess element to the state GST component, as the purpose of the compensation cess was to stringent the finances of the states. He offered the constitution of a GoM to analyze the same dispute and suggest the measure next.

It was recommended by the Deputy Chief Minister that a Committee of Officers be made concerned with the recovery of excess ad-hoc Integrated GST apportionment incurred in the former years since there was a certain discrepancy.