Gadkari Pushes to Remove GST on Life and Health Insurance

Road and Transport Minister Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to eliminate the 18 percent GST on life and health insurance premiums. In a letter dated July 28, Gadkari argued that the tax burdens both senior citizens and the growth of the insurance sector.

His request follows a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union, highlighting industry challenges.

While many industry advocates seek a reduction to 12%, Gadkari is calling for a complete removal of GST. He also raised concerns about inconsistent tax treatments and potential reintroductions of Income Tax on health insurance premiums. The GST Council is expected to discuss this in its upcoming August meeting.