Do you know that the tax on your health insurance (Health Insurance GST) can be reduced soon? Yes, it is true! A big decision can be taken on this in the upcoming meeting of the GST Council. Let us understand what all this is and how it can benefit you.
Important meeting of GST Council
A big decision can be taken regarding the tax on health insurance (Health Insurance GST) in the GST Council meeting to be held on September 9. This decision can not only benefit common people like you but can also affect the government Treasury.
Suggestions of the Fitment Committee
A special committee was formed to consider this issue in depth, which is called the Fitment Committee. This committee has suggested four different options:
- Complete exemption from GST on all health insurance (Health Insurance GST)
- Reducing the GST rate from 18 percent to 5 percent
- Exemption on insurance for the elderly and insurance up to Rs 5 lakh
- Exemption only on insurance for the elderly
The committee has also told how much loss the government can incur due to these options. This loss can be from Rs 645 crore to Rs 3,495 crore.
Efforts to make health insurance cheaper
The government wants more and more people to get health insurance. Therefore, the Department of Financial Services is demanding a reduction in tax on it. They believe that if the insurance is cheaper, more people will buy it. The Finance Department argues that initially the government may suffer a loss due to the reduction in tax, but when more people get insurance, this loss will be compensated in the future. This step is also linked to the government’s goal, in which it wants to provide insurance protection to every citizen by 2047.
History and current status of GST
Finance Minister Nirmala Sitharaman recently said that tax on health insurance is not a new thing. It was taxed even before GST came. But now the question is, can this tax be reduced? Currently, 18% GST is levied on personal health insurance. Last year, the government got revenue of Rs 6,354 crore from this. If GST is reduced, this amount may decrease.
Effect on common man
If the GST on health insurance is reduced, then it will directly benefit common people like you. With the price of insurance coming down, more people will be able to buy it. This will not only provide better health protection to the people but will also protect them from big expenses. Of course, it can be said that the change in GST on health insurance can be an important step. This will not only make insurance accessible to the common people but will also increase the access to health services in the country. The decision to be taken in the upcoming meeting of the GST Council will definitely be very important and can have far-reaching effects.
#TaxReduction #HealthInsuranceGST #FinancialBenefits #InsurancePremiums #GSTUpdates #SavingsOpportunity #FinanceNews
