Through Goods and Services Tax (GST) the revenue collected by the union government on healthcare and life insurance services has moved up by 680 per cent to Rs 16,398 crore in 2023-24 from Rs 2,101 crore in 2019-20, Minister of State for Finance Pankaj Chaudhary said in a written reply in Lok Sabha.
Marginally GST collections in this category reduced in FY24 compared to Rs 16,770 crore collected in FY23.
The same has arrived in between the demands from the stakeholders that comprise the states to lessen the GST rates on the health and life insurance premiums.
Currently, there is an 18% GST on the health insurance services. Particular health insurance schemes fulfil the requirements of distinct abled and economically weaker sections of society like Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy, and Niramaya Health Insurance Scheme, are waived from GST.
Samrat Choudhary Bihar’s deputy chief minister and finance minister, has been appointed as the convenor of a Group of Ministers (GoM) on health insurance. GoM is anticipated to provide its report before the GST council which is scheduled to meet on December 21 in Jaisalmer.
Subsequently, Chaudhary notified the Parliament that the problem of GST on life and health insurance was expressed to the GST council in its 54th meeting conducted dated September 9, 2024, in New Delhi. He added, “After detailed deliberations, the GST Council recommended constituting a Group of Ministers (GoM) to holistically look into the issues about GST on life insurance and health insurance.”
Chaudhary in response cited that the GST collected on education services that shall not get waived like commercial training and coaching has surged by over 67 per cent in the earlier three years.
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The government in FY24, has collected Rs 4,792.40 crore in GST via these services, compared to Rs 2,859.49 crore in FY22. Chaudhary mentioned that “Printed books, including Braille books, newspapers, journals and periodicals, whether or not illustrated or containing advertising material, and children’s picture, drawing or colouring books attract nil GST.”
