Tax has been there on medical insurance even before GST

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 regarding 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 standards, this is their drama.

- Smt @nsitharaman during her reply on #FinanceBill in #LokSabha.

-Wrongful protests have happened recently, and comments have been passed on the basis of a news report which suggested that the 'Centre has pocketed Rs. 24,529 crores of health insurance premiums alone'. This is incorrect and highly misleading. 

The GST rate of 18% on Health Insurance comprises of 9% CGST and 9% SGST. 

Thus, of the total collections of Rs 24,529 crores from Health Insurance in the last 3 years, Half of it, Rs. 12,264 crores, went straight to the states as SGST. It doesn't even come to the Centre. 

Apart from this, roughly 41% of the Centre's share of GST collection on Health Insurance is devolved back to the states again as part of Tax Devolution as per the Finance Commission's formula.

- Smt @nsitharaman during her reply on #FinanceBill in #LokSabha 

Courtesy / Source by :  

- Smt @nsitharaman (Twitter)

https://x.com/nsitharamanoffc/status/1821195467574911204?t=6QebaQgVM5_n_7bnIFvM0g&s=08