Sitharaman says Gadkari's letter seeking GST relief released 'without permission'
Union Finance Minister Nirmala Sitharaman has stated that a letter from Transport Minister Nitin Gadkari, which called for the removal of 18% Goods and Services Tax (GST) on health and life insurance premiums, was made public without his approval. Sitharaman made this statement in the Rajya Sabha, accusing the opposition of opportunism in targeting the Narendra Modi government.
GST Council to consider reducing insurance premiums
"Some minister wrote a letter, and someone from the delegation, without the minister's permission, made it public. The opposition saw this as an opportunity," she said. The finance minister's statement comes amid reports that the GST Council is considering reducing insurance premiums. A CNBC-Awaz report suggested that proposals to reduce the GST on health and life insurance premiums from 18% to 5% may be considered by the GST rate rationalization committee in a meeting on August 22.
Gadkari's letter to Sitharaman on GST exemption
Gadkari had written to Sitharaman on July 28, requesting the complete withdrawal of GST on medical and life insurance. Writing to Sitharaman on behalf of Nagpur LIC union, he argued that high GST on insurance premiums was becoming burdensome for senior citizens. On Wednesday, she had also hit out at the opposition for demanding the removal of GST on life and medical insurance premiums. "Since the letter came in public...they protested...with 200 MPs to demand removal of GST," she said.
Sitharaman clarifies tax distribution from health insurance
Sitharaman pointed out that tax has been present on medical insurance even before the introduction of GST, and that it is not a new issue. She also clarified that half of the total collections from Health Insurance in the last three years went straight to the states as SGST, and roughly 41% of the Centre's share of GST collection on Health Insurance is devolved back to the states again as part of Tax Devolution.
Rahul Gandhi criticizes Modi government over GST collection
Rahul Gandhi, Leader of the Opposition in the Lok Sabha, was one of the people who spoke out against the GST on health and and life insurance. He criticized the Modi government after it was revealed in Parliament that over ₹21,000 crore had been collected as GST in the last three financial years. He accused BJP of looking for a "tax opportunity" before every disaster and called for health and life insurance to be made GST free.
