In a letter to the FM, Gadkari stated, the Nagpur Divisional Life Insurance coverage Company Workers Union has submitted a memorandum to him on the problems pertaining to the insurance coverage business.
The principle subject raised by the Union was associated to the withdrawal of GST on Life and Medical Insurance coverage Premium.
Each life insurance coverage and medical insurance coverage premiums appeal to a GST fee of 18 per cent. Levying GST on life insurance coverage premiums quantities to levying tax on the uncertainties of life, he stated within the letter.
The Union feels that the one that covers the chance of life’s uncertainties to provide some safety to the household shouldn’t be levied tax on the premium to buy cowl in opposition to this threat.
Equally, the 18 per cent GST on medical insurance coverage premiums is proving to be a deterrent for the expansion of this section of enterprise, which is socially crucial, stated Gadkari.
The Union has additionally raised factors associated to differential remedy to financial savings by lifestyle insurance coverage, re-introducing the IT deduction for medical insurance premiums and consolidating public and sector common insurance coverage corporations, he stated.
“You might be requested to think about the suggestion of Withdrawal of GST on Life and Medical Insurance coverage Premium on precedence because it turns into cumbersome for the senior residents as per guidelines with due verification together with different related factors raised,” stated the letter.
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