West Bengal FM Pushes for GST Exemption on Health Insurance

By A Staff Reporter

During the recent GST Council meeting in Delhi, West Bengal Finance Minister Chandrima Bhattacharya strongly advocated for the full exemption of Goods and Services Tax (GST) on health insurance. Bhattacharya emphasized the necessity of easing the financial burden on citizens seeking health coverage, pushing for the complete removal of GST on such services.

"The issue of GST on health insurance was raised by me. I said that full exemption should be given," she stated after the meeting. Bhattacharya also noted that her proposal was backed by the Chief Minister of Goa, along with several other ministers who expressed support for reducing the current 18% tax rate on health insurance.

"Many of the ministers were of the view that it has to be reduced. They were agreeable to reduce it but from 18% to 5%," she added.

The Council has constituted a Group of Ministers (GoM) to study the matter further, and the report is expected by the end of October. A final decision regarding whether health insurance GST will be fully exempted or reduced to 5% is anticipated in the next GST Council meeting following the GoM’s recommendations.