New Delhi: The GST Council has not recommended reduction of the 18 per cent GST rate on health insurance schemes, Finance Minister Nirmala Sitharaman told the Parliament on Monday.
At present, GST on health insurance services is levied at a standard rate of 18 per cent.
“Health insurance, like majority of other taxable supplies, is standard rated at 18 per cent. In pre-GST regime also, health insurance was standard rated,” Sitharaman told the Lok Sabha in a written reply.
“A significant relief in GST has been provided by way of exemption to above stated insurance schemes catering to economically weaker sections of the society and differently abled. Further, healthcare services are also exempt from GST.”
Health insurance schemes catering to the needs of economically weaker sections of the society and differently abled, such as the Rashtriya Swasthya Bima Yojana, the Universal Health Insurance Scheme, the Jan Argoya Bima Policy, and the Niramaya Health Insurance Scheme are fully exempt from GST.
According to Sitharaman, representations to reduce the GST on health insurance were placed before the Council in its 31st meeting held on December 22, 2018 and in its 37th meeting held on September 20, 2019.
“GST Council did not make recommendation for reduction of GST,” she added.