Quick Summary
States have been asked to proceed with the implementation of the measures to cut GST on health and life insurance; however, there is now a worry that, without an anti-profiteering authority to oversee it, insurers may not pass the savings from the lower levy on to consumers. As it is with the possibility of lowering the GST on life insurance, which almost seems likely, health insurance presents a considerable concern. State finance ministers believe that because insurers have, recently, hiked t
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
The main concern is that insurers may not pass the savings from the lower GST on health and life insurance to consumers, as there is no anti-profiteering authority to oversee the process.
Experts are concerned because insurers have recently increased premiums for health insurance, even after a decrease in COVID-related claims, suggesting they might not pass on future savings.
Previously, the India GST Act allowed the government to ensure that benefits from tax cuts were passed on to consumers. However, provisions related to GST rate variations have rendered this inactive.
The current GST rate on health insurance is 18%, which is considered a hindrance to affordable health insurance.
The proposal to relieve individuals with annual health insurance premiums up to Rs 50,000 to Rs 60,000 may not significantly benefit the middle class, who are already complaining about high premiums for basic family coverage.
CAclubindia
