'Doing Drama': FM Sitharaman Slams Opposition Over GST Claims on Health Insurance

New Delhi:  Amid the protests held by opposition leaders over the GST on health insurance premiums, Finance Minister Nirmala Sitharaman on Wednesday informed Lok Sabha that taxes were already imposed on such items even before the GST regime came into effect in 2017.

Sitharaman said that protests by the opposition leaders are just a drama adding that it reflects their double standards over the subject. 

Opposition's Protest Mere Drama

Addressing the Lok Sabha, Finance Minister Sitharaman said," Tax has been there on medical insurance even before GST was introduced. There was already a Service Tax on medical insurance, before the GST was introduced. This is not a new tax, it was already there in all the states. Those protesting here, did they discuss the removal of this tax in their states? Did they write to the Finance Ministers of their respective states about it and asked them to raise it in the GST Council where states have 2/3rd part? No, but they are protesting here. This is their double standard, this is their drama." 

Finance Minister informed Lok Sabha that of the central government's portion of GST, another 41 per cent goes to the states. So, in total, approximately 73-74 per cent the GST collected on health insurance premiums goes to the states. 

In this regard, she again asked the members to write to their respective state's finance minister so that they could take it up in the GST Council meeting.

Meanwhile, the INDIA alliance leaders held a protest against the Central government outside the Parliament on Tuesday, demanding to roll back GST on health and life insurance products. Leader of Opposition in Lok Sabha, Rahul Gandhi also joined the protest.

Nitin Gadkari Urged FM Sitharaman To Remove GST on Health Insurance

Union Minister and senior BJP leader Nitin Gadkari has written to Finance Minister Nirmala Sitharaman, requesting her to withdraw the GST imposed on premiums for life and medical insurance plans.Mr Gadkari has said in his letter that he is writing to the Finance Minister following a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.

To this, Sitharaman in Lok Sabha said, "A letter was written by the Honorable Minister to me. A letter is written by a minister. But because that letter came to the public through someone else, it was open. (People might have thought that) there is a lot of difference of opinion in the government," she informed the parliament as she went on to explain the matter.

She also informed the Lok Sabha that the matter (GST on insurance premiums) was discussed in the 31st and 37th and 47th meetings of the GST Council.