look news india
The Goods and Services Tax (GST) Council is likely to decide on four options to relax the GST rates imposed on health insurance in its meeting to be held on Monday, September 9.
These four options include completely excluding all health insurance premiums and reinsurers from the scope of GST, exemption of premiums paid by senior citizens and up to Rs 5 lakh, or completely exempting only premiums paid by senior citizens and the charges levied on health insurance premiums, reducing GST from 18 per cent to five per cent. This decision is likely to put a burden of about Rs 650 crore to Rs 3,500 crore on the government treasury. These four options have been prepared after extensive discussion on the recommendations of the Fitment Committee, which suggests fixing GST rates. This Fitment Committee consists of revenue officials of both the Central and State Governments. The Fitment Committee is following the request of the Department of Financial Services (DFS). In which DFS has requested that the rate of GST levied on health insurance be relaxed. So that health insurance can be made available to the people and this insurance can be made available to the people at an affordable rate.
The Fitment Committee is likely to submit a detailed report to the GST Council with four options. These four options also include the issue of keeping health insurance premium completely out of the scope of GST. Or the option of reducing the GST levy on health insurance premium from 18 per cent to five per cent can also be provided. Another option may include the issue of completely waiving the GST paid on premiums by senior citizens. Also, relief from GST should be given on insurance premiums up to Rs 5 lakh. Or alternatively, the premium paid on health insurance by senior citizens should be kept out of the scope of GST.
Four options and their economic impact on government revenue
All health insurance premiums and reinsurers should be completely excluded from the scope of GST
All health insurance premiums and reinsurers should be completely excluded from the scope of GST
Or the premiums paid by senior citizens should be waived off completely
GST on health insurance premium should be reduced from 18 percent to 5 percent