Government collects 8% more in GST on health insurance premium in FY24
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The government has collected Rs 8,262.94 crore towards the Goods and Services Tax (GST) on health insurance premium in 2023-24 fiscal year (FY24) as against Rs 7,638 crore GST mopped up in the 2022-23, higher by 8.18% year on year. Besides, in 2023-24, Rs 1,484.36 crore was collected on account of GST on health reinsurance premium as against Rs 963 crore in 2022-23 fiscal, remarking growth of 54.13%
In the 2021-22 financial year, GST of Rs 5,354 crore was mobilised from health insurance premium, while Rs 826 crore came in from health reinsurance premium. Meanwhile, after the introduction of GST with effect from July 1, 2017, GST is leviable on life insurance and health insurance services. Since its inception, GST of 18 per cent rate is levied on premium paid towards health insurance.
However, certain insurance schemes catering to poor sections of the society and differently-abled, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Arogya Bima Policy and Niramaya Health Insurance Scheme are exempt from the GST.
