FM Sitharaman asserts GST on insurance decisions rest with GST Council

NEW DELHI: Finance Minister Nirmala Sitharaman emphasized in the Rajya Sabha on Thursday that the decision regarding the Goods and Services Tax (GST) on health and life insurance premiums rests solely with the GST Council. She stated that the council should now take the lead on this issue, as all relevant stakeholders have already had their perspectives considered.

“…GST on medical insurance is a matter entirely in the realm of the GST Council. Not justifying this way or that way. Let the GST Council decide on medical insurance now that everyone has been heard on this,” Sitharaman told the upper house of the Parliament.

The Finance Minister pointed out that none of the members advocating for a reduction in GST on medical and life insurance have formally approached their respective Finance Ministers to address the issue when they had the opportunity. She also noted that in the previous fiscal year, Rs 12,264 crore collected from GST on life and medical insurance was allocated to the states.

The GST Council is a constitutional body that has made its decision based on its own judgment. However, labeling a decision made by a constitutional body as ‘daylight robbery’ is inappropriate, stated Finance Minister Sitharaman.