In FY2024, the government collected Rs 82,630 crore in GST from health insurance premiums

2024-08-05 11:19:28

The Indian government has collected Rs 8,263 crore in GST on health insurance premiums in the fiscal year 2023-24, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said the government has received requests for exemption or reduction of GST rates on life and health insurance.

In a written reply in the Lok Sabha, the Indian state minister said that since its inception, health insurance premiums have been subject to GST at the rate of 18%.

However, certain insurance schemes for the poor sections of society and people with disabilities, such as the RSBY, the Universal Health Insurance Scheme, the Jan Arogya Bima Insurance Policy and the Niramaya Health Insurance Scheme, are exempted from Goods and Services Tax (GST).

In 2023-24, the GST collected from health insurance premiums is Rs 82,629.4 crore, while the GST collected from health reinsurance premiums is Rs 14,843.6 crore.

In the fiscal year 2022-23, GST of Rs 76,380 crore was absorbed from health insurance premiums and GST of Rs 9,630 crore was absorbed from health reinsurance premiums.

In the financial year 2021-22, Rs 5,354 crore of GST was levied from health insurance premiums while Rs 826 crore was levied from health reinsurance premiums. Replying to another question, Chaudhary said that life and health insurance services were subject to GST after the introduction of GST from July 1, 2017. Asked if there was a demand from the industry to do away with service tax, Chaudhary said, “Delegations have been received for exemption or reduction of GST rates on life and health insurance.”

He added that GST rates and exemptions are fixed on the basis of recommendations of the GST Council, a constitutional body comprising representatives from the Centre and states/Union Territories.

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