GST on Insurance: There will be no tax on health insurance and life insurance! Big relief announced in the health sector..

GST on Health Insurance: Union Finance Minister Nirmala Sitharaman announced major reforms of GST 2.0 on Wednesday night. Under this, a big gift has been given to the health sector. In this, GST exemption will be given on the premiums of personal life insurance and health insurance policies. The government has currently received a revenue of about Rs 16,398 crore from GST on healthcare and life insurance in the financial year 2024. In this, 8135 crores were received from life insurance, and 8263 crores from health insurance. Not only this, Rs 2045 crore was also received from the renewal of life and health insurance.

It is worth noting that the demand for reducing GST in the health sector has been going on for a long time. In India, only 5 to 7 percent of the people still have insurance coverage. Health sector experts say that if GST is abolished from life insurance and health insurance, then the habit of taking health insurance and life insurance cover will increase among the people. At the same time, treatment in hospitals will also be cheaper. The government has also reduced GST on all equipment in the medical sector. At present, 18% GST is levied on health and life insurance. People say that it is not appropriate to impose tax on such things, considering the social security expenditure. This will also reduce people's hesitation in getting car-bike insurance.

GST on life-saving medicines, medical equipment like stethoscopes, thermometers, etc., will also be reduced from 12-18% to 5% or zero. However, high tax will continue on products harmful to health like gutkha, pan masala, cigarettes, tobacco, zarda, unmanufactured tobacco, and bidi. Which will be above 40% after applying cess. The central government has reduced GST on 33 life-saving medicines from 12% to zero.

The benefit of the reduction in GST
Policyholders will take more and more insurance cover
The poor and middle classes will also be able to take out insurance for expensive treatment.
The insurance market's share in GDP will increase due to rising demand.

About 65% of India's population does not have health insurance

These medicines will be cheaper

Onasemnogen abeparvovec

Eskiminib, Mepolizumab

Pegylated liposomal irinotecan

Daratumumab, daratumumab subcutaneous

Teclistamab

Amivantamab

Inclisiran

Alectinib

Risdiplam

Obinutuzumab

Polatuzumab vedotin

Entrectinib

Atezolizumab

Spesolimab

Velaglucerase alpha

Agalsidase alpha

Rurioctocog alpha pegol

Idursulphatase

Alglucosidase alpha

Laronidase

Olipudase alpha

Tepotinib

Avelumab

Emicizumab

Belumosudil

Miglustat

Velmanase alpha
alirocumab
evolocumab
cysteamine bitartrate
CI-inhibitor injection

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.