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regular-article-logo Friday, 04 October 2024

Nitin Gadkari urges FM Nirmala Sitharaman to withdraw 18% GST on life, medical insurance premiums

The 18% GST on medical insurance premiums is proving to be a deterrent for the growth of this segment of business which is socially necessary

PTI New Delhi Published 31.07.24, 02:11 PM
Nitin Gadkari (left) Nirmala Sitharaman (right)

Nitin Gadkari (left) Nirmala Sitharaman (right) File picture

Union Minister of Road Transport and Highways Nitin Gadkari has requested Finance Minister Nirmala Sitharaman to withdraw the 18 per cent goods and services tax (GST) on life and medical insurance premiums.

In his letter to the Finance Minister, Gadkari raised concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted to him a memorandum regarding the issues of the insurance industry.

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Referring to the memo, the minister said, "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 protection to the family should not be levied tax on the premium to purchase cover against this risk." Further, he added that the main issue raised by the union is related to the withdrawal of GST on life and medical insurance premiums.

Both life insurance and medical insurance premiums are subject to an 18 per cent GST rate.

He further said, "Similarly, the 18 per cent GST on medical insurance premiums is proving to be a deterrent for the growth of this segment of business which is socially necessary." "In view of the above, you are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for senior citizens as per rules with due verification," he said.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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