Telangana Deputy CM Advocates for Reduced GST on Health Insurance at GST Council Meeting
Hyderabad: At the 54th GST Council meeting held in New Delhi on Monday, September 9, Telangana Finance and Deputy Chief Minister Mallu Bhatti Vikramarka proposed a significant reduction in the Goods and Services Tax (GST) on health insurance premiums. Bhatti Vikramarka urged Union Finance Minister Nirmala Sitharaman to lower the GST rate for health insurance premiums across all age groups from 18% to 5%.
The Telangana Deputy Chief Minister’s proposal is driven by the need to make health insurance more affordable, particularly for middle and lower-middle-class families who have been facing escalating medical expenses in recent years. Bhatti Vikramarka emphasized the importance of providing accessible and quality healthcare options for these groups.
In addition to advocating for a reduced GST rate, Bhatti Vikramarka called for the complete removal of GST on insurance premiums for senior citizens. He highlighted the responsibility of the government to ensure that health insurance is within reach for all demographics. Furthermore, he proposed exempting GST on research grants and donations received from government and private entities, aimed at supporting research and development.
Bhatti Vikramarka will also be joining the Group of Ministers (GoM), a council composed of ministers from various states tasked with presenting collective petitions to the Union Ministry. The GoM will address several financial policy issues, including clarifying taxability on group and family insurance policies and seeking exemptions or reductions in GST on life insurance premiums.
During the meeting, Bhatti Vikramarka also suggested the formation of an additional GoM to address challenges related to the Compensation Central Excise and Service Tax (CESS)—a supplementary tax levied on certain goods in addition to GST.
Accompanying Bhatti Vikramarka at the GST Council meeting was SAM Rizvi, Principal Secretary of the Revenue Department (CT & Excise) for Telangana. The meeting, chaired by Union Finance Minister Nirmala Sitharaman, provided a platform for these critical discussions on tax reforms and fiscal policies.
