GST on insurance premiums: Nirmala Sitharaman says Nitin Gadkari's letter seeking tax relief released 'without his permission'

Union Finance Minister Nirmala Sitharaman speaks in the Rajya Sabha during the Monsoon session of Parliament, in New Delhi, Thursday, Aug. 8, 2024. (PTI Photo)

Amid buzz of the GST on health premiums likely to be slashed, Union Finance Minister Nirmala Sitharaman has said that Transport Minister Nitin Gadkari’s letter seeking tax rebate was released “without his permission.”

Speaking in the Rajya Sabha, Sitharaman said that Gadkari’s letter, which had sought total removal of 18 percent GST on insurance premiums, was made public without his approval. She said that the Opposition was being opportunistic to target the Narendra Modi government.

The statement comes amid reports of GST council likely to think over reduction of insurance premiums. A CNBC-Awaz report on Thursday had said that there were proposals tio reduce the GST on health and life insurance premiums from existing 18 percent to 5 percent. The report said that GST rate rationalisation committee may consider the proposal in the meeting on August 22.

Last month on July 28, Gadkari had written a letter to Sitharaman to consider the complete withdrawal of GST on medical and life insurance. The transport minister had written that the high GST on insurance premium is becoming “cumbersome for the senior citizens.”

(With PTI inputs)