Kolkata (West Bengal) [India], October 20 (ANI): West Bengal Chief Minister Mamata Banerjee on Sunday stated that the state government’s sustained efforts have led to the BJP-led Central government reconsidering the 18 per cent GST on health and life insurance products/policies, with potential modifications or withdrawal.
“Our sustained efforts appear to be yielding results – the Central Government seems to be under further pressure to finally yield to our demands to withdraw or modify the unjust 18% GST on health and life insurance products/policies,” CM Mamata said in a post on X.
Her statement follows reports that the Group of Ministers (GoM) on GST rate rationalisation on Saturday recommended exempting health insurance premiums up to Rs 5 lakh and term life insurance premiums.
Sources informed ANI that the GoM discussed the exemption of health insurance premiums, with state representatives expressing their support for removing GST on such premiums. The matter will now be discussed by the GST Council before a final decision is made.
Notably, Chief Minister Mamata had written to Union Finance Minister Nirmala Sitharaman in August this year, objecting to the imposition of 18 per cent GST on life and health insurance policies/products and the withdrawal of tax deductions under the new regime, particularly under sections 80C and 80D of the Income Tax Act.
“I had personally written to the Union Finance Minister (see the letter below), warning how their decision to retain the 18 per cent GST on health and medical insurance would deter vulnerable individuals from securing or maintaining their insurance coverage,” she added in her post.
CM Mamata asserted that the recommendation by the GoM to exempt health and term life insurance premiums was not an act of goodwill but a result of relentless pressure from the West Bengal government.
“The reported rollback move suggested by the GoM is significant, though it is not born out of goodwill. It is happening due to relentless pressure from our side. Our leaders have stood firm against anti-people policies that would harm the common public. Our MPs have fought, and our Finance Minister performed excellently in the GoM today,” she said.
“The final decision by the GST Council, if it agrees to relent, will bring much-needed relief to millions of families across the country. We remain committed to putting people’s interests at the forefront of every decision. However, we anxiously await the final outcome and terms of the GST Council’s decision, and we continue to act as sentinels of the people,” she concluded. (ANI)
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