GST Revenue From Health Insurance Premium Surges To Rs 8,263 Crore In FY24
Since the GST's implementation, an 18% tax rate has been applied to premiums for health insurance.
In fiscal 2024, the government collected Rs 8,263 crore in Goods and Services Tax from health insurance premium, as reported to Parliament on Monday by Minister of State for Finance Pankaj Chaudhary. The minister noted that there have been requests for either an exemption or reduction in the GST rate on life and health insurance.
Since the GST's implementation, an 18% tax rate has been applied to premiums for health insurance. However, certain schemes aimed at underprivileged and differently abled populations, including the Rashtriya Swasthya Bima Yojana, Universal Health Insurance Scheme, Jan Arogya Bima Policy, and Niramaya Health Insurance Scheme are exempt from GST.
For fiscal 2024, the GST revenue from health insurance premiums reached Rs 8,262.94 crore, with an additional Rs 1,484.36 crore collected from health reinsurance premiums. This represents an increase from the previous fiscal, where Rs 7,638 crore was collected from health insurance premiums and Rs 963 crore from health reinsurance premiums. In fiscal 2022, the collections were Rs 5,354 crore from health insurance premiums and Rs 826 crore from reinsurance premiums.
Chaudhary also addressed inquiries regarding the industry's call for a reduction or removal of GST on life and health insurance, stating that such matters are considered by the GST Council, a body that includes representatives from both the central and state governments.
(With inputs from PTI)
