The Indian government has amassed Rs 8,263 crore in GST revenue from health insurance premiums for the 2023-24 fiscal year, Parliament was informed on Monday.
Minister of State for Finance, Pankaj Chaudhary, stated that various representations have been made, urging for either an exemption or reduction in GST rates on life and health insurance.
Currently, a GST rate of 18 percent is applied to health insurance premiums, although certain schemes, including Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy, and Niramaya Health Insurance Scheme, are exempt from the tax.
The GST collection from health insurance premiums in 2023-24 stands at Rs 8,262.94 crore, with an additional Rs 1,484.36 crore from health reinsurance premiums.
In the previous fiscal year of 2022-23, GST revenue from health insurance premiums was Rs 7,638 crore, alongside Rs 963 crore from health reinsurance premiums, indicating a significant increase over time.
