GST on insurance premiums: Karnataka in favour of exemption on products used by working class
Karnataka is expected to pitch for GST exemption on health and life insurance only on such products used by the working and lower middle classes at the upcoming GST Council meeting.
The Congress-ruled state is not in favour of a blanket exemption on premium insurance products bought by the higher income groups, according to Krishna Byre Gowda, the state’s revenue minister who represents the southern state on the GST Council.
“We are open to the issue,” he told ET, responding to queries on demands for the removal of 18% GST on life and health insurance premium. “We will suggest health and life insurance, which are more of a working class and lower middle class issue, should be looked at positively, regardless of revenue considerations,” Gowda said.
“Life insurance and health insurance that apply to these classes, we should make them affordable.”
The minister said he will ask for segregated data on the type of products used by different classes of people. “We need segregated data. How much of the insurance market is being consumed by the working class. Which health and insurance products are used by these classes. There are some caps in the income tax regulations, and we may also have to look at the same policy,” Gowda said, while adding that the Sep 9 meeting of the GST Council is expected to hear opinions of member states and take a view on this.
“The working class in India is struggling. There has been a stagnation in their real income, as highlighted by the IMF. Hence we have to look positively at supporting
