Image credits - Pragativadi
Union Finance Minister Nirmala Sitharaman addressed the Lok Sabha, countering demands from opposition members for the removal of GST on these services in a robust defense of the Goods and Services Tax (GST) on health and life insurance. The opposition, citing a letter from Union Minister Nitin Gadkari, has called for the abolition of GST, rallying over 200 MPs to protest the tax.
During her remarks, Sitharaman emphasized that the tax on medical insurance predates the GST regime, having been in place even before GST was introduced. “Tax has been there on medical insurance even before the introduction of GST,” Sitharaman stated. She pointed out that this issue has been discussed extensively within the GST Council, including in its 31st, 37th, and 47th meetings.
The Finance Minister questioned whether the opposition parties, whose states include Congress and Aam Aadmi Party (AAP) governments, had addressed the issue of GST on insurance within their own state jurisdictions. She argued that the topic was not new and had been a matter of discussion long before the current debates in Parliament.
Sitharaman’s comments come as a response to the growing criticism from opposition leaders who have leveraged Gadkari’s letter to challenge the GST policy. The Finance Minister’s statement underscores the complexity of the tax system and the ongoing debates over its impact on various sectors.
As discussions continue, the debate over GST on insurance remains a focal point in the broader discourse on taxation and public finance in India.