Union Finance Minister Nirmala Sitharaman responded to criticism over the 18% Goods and Services Tax (GST) on life and medical insurance premiums, urging critics to consult their state finance ministers, who have a significant role in the GST Council. Sitharaman highlighted that a similar tax existed before GST under Service Tax, asserting that the current GST is not a new imposition.
Critics, including Cabinet colleague Nitin Gadkari and Congress leader Rahul Gandhi, have voiced concerns about the tax. Gadkari, in a letter dated July 28, argued that GST on insurance premiums hinders growth in a socially necessary sector. Rahul Gandhi accused the BJP of exploiting tax opportunities during crises, claiming the government has collected ₹24,000 crore from those struggling with health issues.
The GST on premiums, announced in this year’s budget, has faced backlash from opposition parties, who accuse the Centre of favoring states ruled by its allies. Sitharaman dismissed these allegations, asserting that all states receive funding and that budget mentions do not indicate a lack of support.
