The Centre has said that currently there is no recommendation to reduce the GST rate on health insurance premium.
â€œThe Goods and Services Tax (GST) levied on health insurance premium is 18%. The rate of GST is decided on the recommendations of the GST Council, which is a Constitutional body comprising members from the central government and state governments. At present, no recommendation to reduce the GST rate on health insurance premium is under consideration of the GST Council,â€ minister of state, finance Bhagwat Karad said in a written reply in Lok Sabha.
He was responding to a query on whether the Centre is taking steps to reduce the GST on insurance premium from the present 18% to 5%, considering the increase in health insurance premium by companies on account of Covid.
There was demand to reduce the GST on health insurance premium from 18% to 5%, considering the increase in health insurance premium amid Covid.