-By ArdorComm News Network
November 26, 2024
The Union Government’s Goods and Services Tax (GST) revenue from healthcare and life insurance services reached ₹16,398 crore in FY24, marking a massive 680% increase from ₹2,101 crore in FY20, according to Minister of State for Finance Pankaj Chaudhary’s written reply in the Lok Sabha on Monday. However, collections for FY24 saw a slight dip compared to ₹16,770 crore in FY23.
Current GST Rates and Exemptions:
- GST on health insurance services is levied at 18%.
- Exemptions are provided for specific schemes like Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy, and Niramaya Health Insurance Scheme, targeting economically weaker sections and differently abled individuals.
Demands for GST Rate Reduction:
The figures come amidst rising demands from stakeholders, including state governments, to reduce GST rates on health and life insurance premiums.
Group of Ministers (GoM) on Health Insurance:
Bihar Deputy Chief Minister and Finance Minister Samrat Choudhary has been appointed convenor of a Group of Ministers (GoM) tasked with addressing GST issues related to health insurance. The GoM is set to submit its report to the GST Council at its next meeting in Jaisalmer on December 21, 2024.
Chaudhary noted that the GST Council, during its 54th meeting in September 2024, recommended forming the GoM after extensive deliberations on the matter.
GST on Education Services:
In a related update, GST revenue from non-exempted education services, such as commercial training and coaching, rose by 67% over the past three years.
- FY24 collection: ₹4,792.40 crore
- FY22 collection: ₹2,859.49 crore
Notably, printed books, Braille books, newspapers, journals, and children’s picture books continue to attract nil GST, reinforcing the government’s commitment to making education more accessible.
The GST Council’s upcoming meeting and the GoM’s recommendations will be crucial in determining whether these rates undergo revision to balance fiscal objectives with stakeholder concerns.
Source: Business Standard
Photo Credit: Business Standard