Covid-19 medicines and instruments are sold at a GST rate of 5% while the additional medicines are being sold at a GST rate between 5% to 12% ever since the pandemic begin, Central minister of state for the Finance Pankaj Chaudhary mentioned in the Lok Sabha.
Chaudhary indeed mentioned that 66% of the government-sponsored health insurance policy in the country are being directed by the Central government.
After the Covid-19 pandemic began, the government decided to charge GST between five and twelve per cent on all medicines and reduce it to five per cent on Covid-19-related medicines and instruments, he added
The minister specified that the GST rate for health insurance is 18%, which is as per international standards and identical to what it was in the pre-GST days in the country.
He specified that the senior citizens would claim the tax rebates of up to Rs 1 lakh on the health insurance scheme.
Chaudhary mentioned that the GST rates and privileges on all services along with the GST on the health insurance premiums are being mentioned on the suggestions of the GST official which is a constitutional body that consists of the Union Finance minister and ministers who are appointed by the corresponding state and UT government.
“At present, Goods and Services Tax (GST) on health insurance services is levied at the standard rate, i.e., 18 per cent. Specific health insurance schemes catering to the needs of economically weaker sections of the society and differently-abled, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Argoya Bima Policy and Niramaya Health Insurance Scheme are fully exempt from GST, he added.”
Moreover, he mentioned that healthcare services are indeed exempt from the GST. The representations to diminish the GST on health insurance were placed to the GST official in its 31st meeting which is held on 22nd December 2018 and in its 37th meeting held on 20th September 2019.
GST officials would not make any suggestion for the GST reduction, he added.
