Gadkari Urges Removal of GST on Insurance Premiums: Writes to Finance Minister Sitharaman
Road, Transport, and Highways Minister Nitin Gadkari Requests Finance Minister Nirmala Sitharaman to Remove GST from Life and Health Insurance Premiums
Road, Transport, and Highways Minister Nitin Gadkari has written a letter to Finance Minister Nirmala Sitharaman, requesting the removal of GST from life and health insurance premiums. He stated that imposing GST on insurance premiums is akin to taxing life’s uncertainties (such as treatments and accidents).
Impact on the Growth of the Insurance Sector
Gadkari made this request to the Finance Minister after receiving a memorandum from the Nagpur Division Life Insurance Corporation Employees Union.
Imposing GST on Insurance Premiums is Like Taxing Life’s Uncertainties
In his letter dated July 28, Gadkari mentioned that the Nagpur Division Life Insurance Corporation Employees Union handed him a memorandum concerning issues related to the insurance industry and requested him to raise them with the Finance Minister. The union’s issue is to remove GST from life and medical insurance premiums, both of which attract 18% GST.
The union believes that imposing GST on life insurance premiums is akin to taxing life’s uncertainties. According to the union, people buy insurance to cover the risks of life’s uncertainties; therefore, it should not be taxed.
