Insurance Policy: Mamta Banerjee supports Gadkari on the demand to remove GST from insurance policy
GST on Insurance Premium: Union Road and Transport Minister Nitin Gadkari had written a letter to Finance Minister Nirmala Sitharaman recently demanding the removal of GST on life and health insurance. Now West Bengal Chief Minister Mamata Banerjee has supported Gadkari's demand by demanding the removal of GST on insurance policies. Mamata Banerjee said that it adversely affects people's ability to take care of their important needs. Union Minister Nitin Gadkari, in a letter to Finance Minister Nirmala Sitharaman, has demanded the removal of GST imposed at the rate of 18 percent on life insurance and health insurance premium.
Will the decision be taken in the GST Council meeting?
This demand made by Gadkari in a letter written to his colleague minister Nirmala Sitharaman has received support from many opposition leaders including Congress MP Karti Chidambaram, Samajwadi Party's Rajiv Kumar Rai, and Rashtriya Janata Dal MP AD Singh. The GST Council, the highest body that takes decisions on GST-related matters, is going to meet this month. Its last meeting was held in June. Now it remains to be seen whether any decision is taken on this by the government.
How much will be the benefit?
If the government considers the demand of Nitin Gadkari, Mamta Banerjee, and other leaders to remove GST, then the common man can get a big relief from it. For example, if the premium of your life insurance and health insurance is Rs 30,000 annually, then a major part of it is GST. Out of the policy premium of Rs 30,000, Rs 4,576 (18 percent) is GST, while the premium of the policy is Rs 25,424. But if the government removes GST, then after this you will have to pay only Rs 25,424.