Union Finance Minister Nirmala Sitharaman criticised the Opposition on Thursday for using the opportunity to attack the government after Transport Minister Nitin Gadkari's letter, seeking the removal of 18 per cent GST on health and life insurance premiums, was made public without his consent.
"Some minister wrote a letter, and someone from the delegation, without the minister's permission, made it public. The opposition saw this as an opportunity," FM Sitharaman said while addressing the Rajya Sabha.
Just a day before, Sitharaman criticised the Opposition parties for walking out of the Lok Sabha after their proposal to eliminate GST on medical and life insurance premiums was rejected. She claimed that the walkout was simply an attempt to save face.
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"They were given appropriate response to all their issues. They were looking for a face-saver and picked on this to stage a walkout. It was an afterthought," she said.
Following her address in the Lok Sabha, Sitharaman told reporters that the GST Council is responsible for all GST-related matters. She pointed out that the Opposition's demand to bring such an amendment to Parliament was misplaced as it is the GST Council that has the authority to discuss and decide on such issues.
How Much did the Centre Earn from GST on Insurance Premiums?
In a separate statement, the Centre revealed that nearly Rs 24,000 crore was collected from GST on health and life insurance over the past three financial years. Additionally, Rs 3,274 crore was earned from reissuing health policies.
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The 18 per cent GST on health premiums is split equally, with 9 per cent going to both the states and the Centre, Sitharaman said while addressing the House.
Even from the Centre's 9 per cent share, 41 per cent is redistributed to the states according to GST regulations. This means that 73-74 per cent of the GST revenue from premiums ultimately reaches the states.
She also added that Rs 12,264 crore of the GST collected from life and medical insurance was allocated to the states.
