Govt collects Rs 16,398 crore GST on health, life insurance in FY24: FinMin
New Delhi, Nov 25, 2024
This comes amid demands from stakeholders, including states, to reduce GST rates on health and life insurance premiums
The revenue collected by the union government through Goods and Services Tax (GST) on healthcare and life insurance services surged 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 on Monday.
However, GST collections in this category dropped marginally in FY24 compared to Rs 16,770 crore collected in FY23.
This comes amid demands from stakeholders, including states, to reduce GST rates on health and life insurance premiums.
At present, GST on health insurance services is levied at a standard rate of 18 per cent. Specific health insurance schemes catering to the needs of differently abled and economically weaker sections of society, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy, and Niramaya Health Insurance Scheme, are exempt from GST.
Bihar’s deputy chief minister and finance minister, Samrat Choudhary, has been appointed as the convenor of a Group of Ministers (GoM) on health insurance. The GoM is expected to submit its report to the GST Council, which is scheduled to meet in Jaisalmer on December 21.
Chaudhary further informed Parliament that the issue of GST on life and health insurance was placed before the GST Council in its 54th meeting held on September 9, 2024, in New Delhi. “After detailed deliberations, the GST Council recommended constituting a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance,” he said.
In another reply, Chaudhary stated that GST collected on education services that are not exempted—such as commercial training and coaching—has risen by over 67 per cent in the past three years.
In FY24, the government collected Rs 4,792.40 crore in GST from such services, compared to Rs 2,859.49 crore in FY22. “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,” said Chaudhary.
[The Business Standard]
