Finance Minister Nirmala Sitharaman Defends GST on Insurance Premiums Amid Opposition Protests

Finance Minister Nirmala Sitharaman defended the 18% GST on insurance premiums, emphasizing it existed before GST's introduction. She urged states' finance ministers to discuss the issue in the GST Council, which includes two-thirds state representation. Opposition leaders, including Rahul Gandhi, protested against the tax outside Parliament.

Amid escalating protests from opposition parties, Finance Minister Nirmala Sitharaman on Wednesday defended the 18% GST on health and life insurance premiums, highlighting that such taxes existed before the GST regime was implemented in 2017. Speaking during the discussion on the Finance Bill 2024-15, which was passed today, she insisted that the matter should be taken up by states in the GST Council.

Addressing the concerns raised by opposition leaders, Sitharaman underscored that states represent two-thirds of the GST Council, a constitutional body. She suggested that the members should engage their respective state finance ministers to bring the issue to the council's attention, pointing out that the final decision rests with this body.

Sitharaman accused the opposition of performing 'double standards' and 'drama,' stating that taxes on insurance premiums are not new. Recently, several leaders from opposition-ruled states, including West Bengal Chief Minister Mamata Banerjee, have called for a reduction in GST on insurance premiums. Furthermore, she stated that approximately 74% of the GST collected on health insurance premiums is allocated to states.

(With inputs from agencies.)