Sustained efforts by Bengal forced Centre's likely decision to exempt GST on health premium: Mamata

She said the central government appears to be "under pressure" to cut taxes to benefit the common people.

West Bengal Chief Minister Mamata Banerjee on Saturday claimed that the Centre’s likely decision to exempt GST on term life insurance premiums and premiums paid by senior citizens for health coverage is the result of sustained efforts by the state government.

She said the central government appears to be "under pressure" to cut taxes to benefit the common people. An official stated that term life insurance policies and health insurance premiums for senior citizens are likely to be exempt from GST, as most members of a state ministerial panel favored tax cuts to benefit the public. The GoM (Group of Ministers), which met on Saturday to decide on GST for health and life insurance premiums, chose to exempt GST on premiums paid by individuals, other than senior citizens, for health insurance coverage up to Rs 5 lakh. However, 18% GST will continue to be levied on health insurance coverage exceeding Rs 5 lakh.

"Our sustained efforts appear to be paying dividends – the Central government looks like it is being further pressured into finally succumbing to our demands to withdraw/modify the unjust 18% GST on health and life insurance products/policies," Banerjee wrote on X. The chief minister, while sharing screenshots of letters she had written to the Union Finance Minister in August, said, "I had personally written to the Union Finance Minister (see the letter below), warning how their decision to keep 18% GST on health and medical insurances would deter vulnerable individuals from securing or maintaining their insurance coverage."

Banerjee described the reported rollback move suggested by the Group of Ministers of the GST Council as "significant, though it is not coming out of goodwill." "It is coming because of relentless pressure from our side. Our leaders have stood firm against anti-people policies that would harm the common people. Our MPs have been fighting, and our Finance Minister fought very well in the Group of Ministers today," she said.

Banerjee added that the final decision by the GST Council, if it relents, will bring much-needed relief to millions of families across the country. "We remain committed to putting the people’s interests at the forefront of every decision. However, we anxiously wait to see the final shape and conditions of the eventual decision by the GST Council, and we remain sentinels of the people," she said.

A final decision on GST for health and life insurance premiums, as well as rate rationalisation, is likely to be taken by the GST Council, chaired by the Union Finance Minister and comprising state counterparts, in its meeting scheduled for next month.