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NEW DELHI: Amid rising demand for a lower, if not removing, of GST on health and life insurance, government on Monday informed Parliament that the levy fetched it Rs 21,256 crore over the past three monetary years, with Rs 8,263 being collected throughout 2023-24.
Responding to a Parliament query, junior minister for finance Pankaj Chaudhary stated one other Rs 3,274 crore was acquired as GST from reissuance of health insurance policies throughout final three years.The GST Council had fastened 18% price when the brand new regime kicked in from July 2017. According to the formulation, the Centre collects 9% GST with an identical assortment by states. From the Centre’s kitty, 41% is shared with the states in line with the devolution formulation.
To a query on whether or not there’s a demand from the trade for withdrawal of service tax, Chaudhary stated “representations have been received requesting for exemption or reduction in the rate of GST on life insurance and health insurance“. GST charges and exemptions are prescribed on the suggestions of the GST Council, which is a constitutional physique comprising representatives from each the Centre and the States/UTs, he added.
The minister stated that sure insurance schemes catering to poor sections of the society and otherwise abled, corresponding to Rashtriya Swasthya Bima Yojana, Universal Health Insurance Scheme, Jan Arogya Bima Policy and Niramaya Health Insurance Scheme are exempt from GST.
Following Nitin Gadkari’s suggestion to dispose of GST on health and life merchandise, the demand has gained traction with Bengal netas leaping in to hunt the removing of the levy. TMC MP Derek O’Brien sought a discount in the levy. “The demand is straightforward. Reduce 18% GST on medical and health insurance. We should reduce it because this is an issue which is burdening people, mainly middle class. That is why this needs to be reduced,” he stated throughout Monday’s zero hour.
Responding to a Parliament query, junior minister for finance Pankaj Chaudhary stated one other Rs 3,274 crore was acquired as GST from reissuance of health insurance policies throughout final three years.The GST Council had fastened 18% price when the brand new regime kicked in from July 2017. According to the formulation, the Centre collects 9% GST with an identical assortment by states. From the Centre’s kitty, 41% is shared with the states in line with the devolution formulation.
To a query on whether or not there’s a demand from the trade for withdrawal of service tax, Chaudhary stated “representations have been received requesting for exemption or reduction in the rate of GST on life insurance and health insurance“. GST charges and exemptions are prescribed on the suggestions of the GST Council, which is a constitutional physique comprising representatives from each the Centre and the States/UTs, he added.
The minister stated that sure insurance schemes catering to poor sections of the society and otherwise abled, corresponding to Rashtriya Swasthya Bima Yojana, Universal Health Insurance Scheme, Jan Arogya Bima Policy and Niramaya Health Insurance Scheme are exempt from GST.
Following Nitin Gadkari’s suggestion to dispose of GST on health and life merchandise, the demand has gained traction with Bengal netas leaping in to hunt the removing of the levy. TMC MP Derek O’Brien sought a discount in the levy. “The demand is straightforward. Reduce 18% GST on medical and health insurance. We should reduce it because this is an issue which is burdening people, mainly middle class. That is why this needs to be reduced,” he stated throughout Monday’s zero hour.
