Health Insurance GST- Big news for common people. The central government has prepared for a major change in the Goods and Services Tax (GST), which has been named GST 2.0. It is believed that there can be only 2 slabs in this new GST, due to which 99% of the products can become cheaper with this change.
One of the products in this is insurance. There are reports that the government is planning to reduce GST on insurance policies. 5% or zero% GST can be levied on insurance. Currently, 18% GST is levied on insurance. If GST is reduced, then the insurance sector is expected to get a boost.
Due to 18% GST, many people are not able to avail the benefits of insurance policy. In any case, considering the increasing cost of medical treatment, having a health insurance policy is very important, especially for senior citizens. This provides relief from the huge cost of treatment. Along with this, a person also feels mentally secure. Due to the reduction in GST, relief from inflation is expected in many sectors. It is expected that GST on insurance can be 5% or 0%.
Demand for reduction of GST in insurance
Insurance companies have also been demanding a reduction in GST for a long time . Companies say that health insurance does not come under luxury products, so it is not right to impose so much tax on it. Reliance General Insurance CEO Rakesh Jain says that reducing GST on insurance products will provide great relief to the common man.
Giving an example, he explained that if the premium of an insurance product is Rs 10,000, then after applying GST, its price reaches Rs 11,800. In such a situation, it becomes very expensive for the common man. If this tax is reduced, many people may be encouraged to buy insurance policies. This can help people get rid of expensive treatment.
Senior citizens will get relief
Rakesh Jain further said through an article that if the premium is reduced, it will provide great relief to senior citizens, their medical expenses will be reduced. Policy holders will be able to take more and more insurance cover. It will help in increasing the reach of insurance to the poor and middle class. With the increase in demand, the share of the insurance market in the country’s GDP will increase.