The Indian government collected over Rs 16,000 crore in Goods and Services Tax (GST) from healthcare and life insurance services in the fiscal year 2024.

GST Revenue from Healthcare and Life Insurance

The total GST revenue amounted to Rs 16,398 crore, with Rs 8,135 crore generated from life insurance and Rs 8,263 crore from health insurance.

Re-Insurance Activities

Re-insurance activities contributed Rs 2,045 crore to the GST collection, comprising Rs 561 crore from life re-insurance and Rs 1,484 crore from health re-insurance.

Exemption for Certain Health Insurance Schemes

Notable schemes include:

• Rashtriya Swasthya Bima Yojana (RSBY)
• Universal Health Insurance Scheme
• Jan Arogya Bima Policy
• Niramaya Health Insurance Scheme

Discussion on GST Rates

The issue of GST rates on life and health insurance has been a topic of ongoing discussion within the government. A Group of Ministers (GoM) has been formed to examine the complexities surrounding GST in these sectors. The recommendations from this group are expected to be presented to the GST Council, which is scheduled to meet on December 21 in Jaisalmer.

Fluctuations in GST Revenue

The fluctuations in GST revenue from healthcare and life insurance services underscore the dynamic nature of the insurance market in India. Insurance companies may need to adjust their pricing strategies and product offerings in response to potential changes in tax rates.

Future of the Insurance Industry

The outcome of the upcoming GST Council meeting will be pivotal in shaping the future of the insurance industry in India.