Union Minister Nitin Gadkari wrote a letter to Finance Minister Nirmala Sitharaman on Wednesday, seeking the withdrawal of the 18% Goods and Services Tax (GST) levied on life and medical insurance premiums. In his letter, Gadkari conveyed the concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum regarding issues in the insurance industry.
“The main issue raised by the Union is the withdrawal of GST on life and medical insurance premiums. Both premiums attract a GST rate of 18%. Levying GST on life insurance premiums amounts to taxing the uncertainties of life,” the Road Transport and Highways Minister wrote, referencing the memo.
“The Union feels that those who mitigate the uncertainties of life to provide some protection to their families should not be taxed on the premium paid for this coverage. Similarly, the 18% GST on medical insurance premiums is hindering the growth of this socially necessary segment of business. Therefore, they have urged the withdrawal of this GST,” he added.
Gadkari further stated: “In light of the above, you are requested to prioritise the consideration of withdrawing GST on life and medical insurance premiums, as it becomes cumbersome for senior citizens according to the rules, with due verification along with other relevant points raised.”