Activist to PMO: Why is health insurance charged 18% GST?

With the financial year coming to an end, tax-saving is on everyone’s mind. Taking this a step ahead is MP activist Chandrashekhar Gaur who has written to the Prime Minister’s office and asked that the 18 per cent GST on healthcare insurance be removed, citing healthcare to be a basic need.

While over 2.43 crore people have been registered under Ayushman Bharat — the world’s largest healthcare scheme — those who are not covered under the government scheme will have to turn to the private sector and pay heavy premiums with high GST, said Gaur, an RTI activist from Neemuch.

“Health is every person’s basic right. With its Ayushman Bharat Yojana, the government has covered the vulnerable groups, which I understand is required. But what about the huge population that is middle class? Why are they forced to pay a whopping 18 per cent GST on healthcare insurance?” he said, adding, “With inflation in medical treatments, mediclaims are the need of the hour.”

In his letter, he has pointed out the degrading healthcare facilities at government hospitals, which force common man to move to private hospitals. With no regulation on prices at private healthcare institutions, a middle-class man is forced to buy health insurance, now with huge premiums including 18 per cent GST.

While the GST on healthcare insurance qualifies for a tax benefit, but it totally depends on the salary slab, said Jinendra Surana, a finance expert.