Union Minister of State for Finance Pankaj Chaudhary speaks in the Lok Sabha
| Photo Credit: ANI
Goods and Services Tax (GST) collections on health insurance premium payments by consumers have risen by more than 54% between 2021-22 and 2023-24, yielding ₹8,262 crore last year, with health reinsurance levies delivering nearly another ₹1,500 crore, according to data shared by the Finance Ministry in Lok Sabha on August 5.
Over the last three financial years, GST levies on health insurance premia added up to ₹21,255.6 crore. Reinsurance premia paid by insurers yielded about ₹3,274 crore of GST revenues over this period, rising 79.7% between 2021-22 and 2023-24.
Responding to queries from MPs related to the indirect tax, Minister of State for Finance Pankaj Chaudhary also acknowledged that representations had been received requesting for exemption or reduction in the rate of GST on life insurance and health insurance.
“GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a constitutional body comprising representatives from both the Centre and the States/UTs,” Mr. Chaudhary said.
On lowering GST levies on raw materials for fertilisers such as sulphuric acid and ammonia, as recommended by a parliamentary panel, the Minister said the GST Council had discussed the matter on six occasions, including its last meeting held in June, when it was referred to the Group of Ministers tasked with the rate rationalisation exercise.
