Gadkari Appeals for GST Relief on Insurance Premiums

Union Minister Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to remove the 18% GST on life and medical insurance premiums. He emphasized that such a tax is unfair, particularly for senior citizens, and could hinder the growth of the insurance sector.

Union Minister of Road Transport and Highways Nitin Gadkari has formally appealed to Finance Minister Nirmala Sitharaman, urging the removal of the 18 percent goods and services tax (GST) on life and medical insurance premiums. The request follows concerns raised by the Nagpur Division Life Insurance Corporation Employees Union.

In his letter, Gadkari stated that imposing GST on life insurance premiums essentially taxes the uncertainties of life. 'Levying tax on those securing their family’s future is both unfair and detrimental,' Gadkari noted, while stressing that the primary issue raised by the union was the withdrawal of GST on these premiums.

He further highlighted that the 18 percent GST on medical insurance premiums is inhibiting the growth of a socially essential sector. He urged Sitharaman to prioritize the consideration of this withdrawal, particularly to ease the burden on senior citizens who find the process cumbersome.