Letter to BS: Govt should consider reducing GST rate on mediclaim premium

Topics Letter to BS | GST | GST rate

The government has introduced several bold and innovative measures cutting across the vital sectors of economy, both in terms of giving a boost and also to bring about uniformity in the tax systems and procedures across the country, while enhancing revenue generation. It has simultaneously made available room and flexibility for reconsideration.

Levying of GST on certain items is one such thing. It is well known that health care, social security, and life cover are three critical aspects. Presently, GST is also levied on mediclaim premium paid and this quantum is burning a hole in the premium payer’s pocket. The mediclaim premium amount is also going up steeply and considering that life expectancy is increasing, the increasing premium becomes a big burden. To soften this, the government should seriously consider either scrapping or at least scaling down the GST rate on mediclaim premium to a reasonable level. It is akin to a contingent liability and again the process is not a commercial transaction intended to derive any profit. It is hoped that the government will pay due heed to this request.

Srinivasan Umashankar,  Nagpur


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