Opp should convince their states to propose removal of GST on insurance at Council meeting FM

New Delhi, Aug 7 (PTI) Finance Minister Nirmala Sitharaman on Wednesday asked the opposition to convince their states to propose removal of 18 per cent GST levied on life and health insurance premiums at the GST Council.
    Those who are demanding removal of 18 per cent GST on premiums on life and medical insurance should first convince their finance ministers of respective states on this matter, she said replying to debate on Finance Bill (No.2), 2024, in the Lok Sabha.
    The finance ministers of states ruled by the opposition should have the heart to take a call on removal of 18 per cent GST and make recommendations at the Council meeting, she said.
    Tax was being levied on medical insurance premiums prior to the GST rollout, she said, adding this tax was subsumed into GST.
    Finance ministers of Congress, TMC, AAP and left-ruled states should come up with proposals at the GST Council rather than protesting outside Parliament, she said.
    "Have you consulted your states for removal...have you written to your state Finance Ministers but here you are protesting against GST...what is this drama", she quipped.
    The issue came up in three GST Council meetings -- 31st , 37th and 47th meeting.
    About 73-74 per cent of GST collected under the head goes to states and they should have the heart to forgo this, she said.
    Out of the total GST collections of Rs 24,529 crore from Health Insurance in the last three years, she said, half of it, Rs. 12,264 crores, went straight to the states as SGST. It doesn't even come to the Centre.
    Apart from this, roughly 41 per cent of the Centre's share of GST collection on Health Insurance is devolved back to the states again as part of Tax Devolution as per the Finance Commission's formula, she said.
    "The issue of removal of 18 per cent GST can be decided by the GST Council. Bringing an amendment here will not serve any purpose. First the GST council will decide, then only an amendment can be brought here," she said.
    Commenting on the walkout staged by the opposition on the issue of the Speaker not considering an amendment moved by N K Premachandran (RSP) on the removal of GST, she said Parliament is not the right forum for this.
    "The opposition tried to get a GST amendment through the Finance Bill. How can Parliament consider any subject which has not been approved by the GST Council," she said.
    Premachandran, a senior member, was not rightly informed about the issue of GST that is why the Speaker did not take up the amendment moved by him, she said.
     "Everything was going on smoothly, but MP NK Premachandran alleged that his request for an amendment was not considered by the Speaker. He wanted an amendment in GST via the Finance Bill. I think the MP was not rightly informed. The Speaker did not consider it because it can only be considered by the GST council," she said.
    Expressing regret about the walkout during the discussion and passage of the Finance Bill, she said, it was disappointing that the opposition did not contribute to the passage of the Finance Bill.

(This story has not been edited by THE WEEK and is auto-generated from PTI)