FM says Council did not recommend reducing GST on health insurance

NEW DELHI: At present, GST on health insurance services is levied at a standard rate of 18 per cent.

“Health insurance, like majority of other taxable supplies, is standard rated at 18 per cent. In pre-GST regime also, health insurance was standard rated,” Sitharaman told the Lok Sabha in a written reply.

“A significant relief in GST has been provided by way of exemption to above stated insurance schemes catering to economically weaker sections of the society and differently abled. Further, healthcare services are also exempt from GST.”

Health insurance schemes catering to the needs of economically weaker sections of the society and differently abled, such as the Rashtriya Swasthya Bima Yojana, the Universal Health Insurance Scheme, the Jan Argoya Bima Policy, and the Niramaya Health Insurance Scheme are fully exempt from GST.