Agencies New Delhi, July 31 Union Minister Nitin Gadkari wrote a letter to Finance Minister Nirmala Sitharaman on Wednesday, seeking the withdrawal of the 18 Goods and Services Tax GST levied on life and medical insurance premiums. In his letter, Gadkari conveyed the concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum regarding issues in the insurance industry. The main issue raised by the Union is the withdrawal of GST on life and medical insurance premiums. Both premiums attract a GST rate of 18 . Levying GST on life insurance premiums amounts to taxing the uncertainties of life, the Road Transport and Highways Minister wrote, referencing the memo. The Union feels that those who mitigate the uncertainties of life to provide some protection to their families should not be taxed on the premium paid for this coverage. Similarly, the 18 GST on medical insurance premiums is hindering the growth of this socially necessary segment of business. Therefore, they have urged the withdrawal of this GST, he added. Gadkari further stated: In light of the above, you are requested to prioritise the consideration of withdrawing GST on life and medical insurance premiums, as it becomes cumbersome for senior citizens according to the rules, with due verification along with other relevant points raised.
Union minister Nitin Gadkari urged finance minister Nirmala Sitharaman to withdraw the 18 per cent Goods and Services Tax GST levied on life and medical insurance premiums, calling it a tax on the uncertainties of life. In the letter addressed to the FM, Gadkari said: Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium. Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life s uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk. Similarly, the 18 GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary. Therefore, they have urged withdrawal of GST as mentioned above, he added. The minister noted that the Union has put forth several suggestions, Contd. on page 2
