Minister of Road Transport & Highways of India Nitin Gadkari Urges FM Nirmala Sitharamanto to Remove 18% GST on Life & Medical Insurance Premiums

Minister of Road Transport & Highways of India Nitin Gadkari recently urgedFM Nirmala Sitharamanto to remove 18% GST on Life & Medical Insurance Premiums as it restricts the growth of the sector and levies tax on uncertainties of life. In a letter written to Nirmala Sitharamanon July, 28thhe stated that - to consider the suggestion of withdrawal of GST on life and medical insurance premiums on priority as it becomes cumbersome for the senior citizens. Currently, there is an 18% GST on all Life and Health insurance premiums, which the minister opines is restricting the growth of the sector, especially the health insurance sector which is also socially expected to grow and provide ease to the masses.

Gadkari’s letter further mentioned that levying GST on life insurance premiums amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life’s uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk.

According to a report in Moneycontrol, the letter was a response to a memorandum submitted by the Nagpur Divisional Life Insurance Corporation Employees Union, to the road and transport minister raising concerns about the problems faced by the insurance industry as Nitin Gadkari is a Member of Parliament representing the Nagpur constituency in the Lok Sabha.

The GST Council, which last met on June 22 will next meet in August. The GST Council is a constitutional body that makes recommendations related to the implementation of the Goods and Services Tax (GST) in India.