Deputy Chief Minister Mallu Bhatti Vikramarka proposed exemption of Goods and Services Tax (GST) for health insurance premiums for senior citizens and for reduction or exemption on health insurance premiums on the grounds that access to quality healthcare of their choice is to be ensured to the middle and lower middle class groups owing to high medical expenses.
The Minister made these remarks at the 54th GST Council meeting, chaired by Nirmala Sitaraman, Union Finance Minister in New Delhi on Monday. Principal Secretary to Government (Revenue) S.A.M. Rizvi also represented the State.
During the discussion, Mr. Vikramarka made several proposals including exemption of GST on research grants or donations received from the government or private agencies, reduction of GST from the existing rate of 18% to 5% on health insurance premiums for all age groups. He said it was the responsibility of the government to make health insurance affordable to all.
Mr. Bhatti also volunteered to be part of the Group of Ministers (GoM) to study tax aspects on group policies and family policies. The GoM would submit its recommendations within a month so that the same can be discussed and appropriate decision taken in the next GST Council meeting. It would also look into the matter of granting exemption or reduction of GST on life insurance premiums.
On the issue of compensation cess, Mr. Vikramarka observed that, after discharging the loan amount, it would be appropriate to add cess component to the State GST component, as the purpose of compensation cess was to strengthen the finances of the States. He also proposed constitution of a GoM to examine this issue, and recommend the future course of action.
The Deputy Chief Minister also suggested that a Committee of Officers be constituted to look into the recovery of excess ad-hoc Integrated GST apportionment made in earlier years as there was some discrepancy.
Published – September 10, 2024 03:54 am IST
