GST Waiver on Health Insurance: Boon or Bane for West Bengal?
West Bengal's Chief Minister, Mamata Banerjee, supports a GST waiver on health insurance premiums to make policies more affordable, although it could cost the state's exchequer Rs 900 crore annually. The proposal, aimed at boosting insurance penetration, raises concerns among states about potential revenue losses.
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West Bengal Chief Minister Mamata Banerjee has voiced support for waiving Goods and Services Tax (GST) on health insurance premiums. This initiative aims to make medical coverage more financially accessible, although it could result in a Rs 900 crore annual revenue loss for the state.
The proposal to exempt health insurance from GST is set for discussion at the upcoming GST Council meeting. Banerjee emphasized that West Bengal was the first state to advocate for this exemption, prioritizing its citizens' needs over potential fiscal drawbacks.
While applauding the initiative, Banerjee warned against insurance companies leveraging the GST reduction to increase premiums. The plan aims to boost insurance penetration, a pressing need given that less than one-fifth of India's population currently holds private health policies.
(With inputs from agencies.)
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