The Minister Of Road Transport And Highways Nitin Gadkari in a letter written to the Union Finance Minister, Nirmala Sitharaman on 28.0.2024 has questioned the imposition of 18% GST on life insurance and medical insurance premiums.
Nitin Gadkari has written a letter in furtherance of the memorandum submitted by the Nagpur Divisional Life Insurance Corporation Employees Union, Nagpur about the issues pertaining to the Insurance Industry and sought to take up them.
The Union stated that both the life insurance and medical insurance premiums attract a GST rate of 18%.
The levying GST on life insurance premium 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 some protection to the family should not be levied tax on the premium to purchase cover against this risk. Similarly, the 18% GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary. Therefore, the union urged withdrawal of GST.
The Union has also raised points related to Differential Treatment to Savings by way of Life Insurance, re-introduction of Income Tax deduction for health insurance premium and consolidation of public and sector general insurance companies.
“You are requested to consider the suggestion of Withdrawal of GST on Life and Medical Insurance Premium on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised,” Nitin Gadkari while requesting Nirmala Sitharaman said.
Nitin Jairam Gadkari is an Indian politician from Maharashtra who is serving as the 40th Minister of Road Transport & Highways in the Government of India since 2024. He is also the longest serving Minister for Road Transport & Highways, currently in his tenure for over ten years (2014-present), and is the only person to serve under a single portfolio for three consecutive terms. Gadkari earlier served as the President of the Bharatiya Janata Party (BJP) from 2009 to 2013.
Read Original Letter
