New Delhi: Minister of State for Finance Bhagwat K Karad on Monday said there is no recommendation under consideration of the GST Council to reduce the Goods and Services Tax (GST) on health insurance premiums.
Bhagwat Karad replied in a written reply in Lok Sabha that the GST on health insurance premium is 18 per cent.
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“The rate of GST is decided on the recommendations of the GST Council, which is a constitutional body consisting of members from the central government and state governments. Presently, no recommendation to reduce the GST rate on health insurance premium is under consideration of the GST Council.”
Responding to another question, the Minister of State for Finance said that expansion of health insurance on commercial basis is within the purview of insurers, who, with the approval of their respective boards, formulate their business and growth strategies, and enable this through economies of scale. Such extension helps in bringing about cost efficiency.
Strengthening the regulatory mechanism for policyholder protection is a function enshrined in the insurance regulator by the Insurance Regulatory and Development Authority Act, 1999, which reviews the rules on an ongoing basis in the light of their work experience and the needs of the insurance industry, he said. mentioned .
He further said that “While public health is a state subject and accordingly state governments primarily undertake public health interventions from time to time, the central government has made Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana an annual centrally sponsored scheme for families. 5 lakh health cover for 10.74 crore families (about 50 crore beneficiaries), thereby expanding health insurance coverage in a big way.
In another response, Bhagwat Karad spoke about the Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) in July 2021, in which the macro-stress test indicates that the gross non-performing assets of scheduled commercial banks (SCBs) The performing asset (GNPA) ratio, under the baseline scenario, may increase from 7.48 per cent in March 2021 to 9.80 per cent by March 2022.
“As per RBI inputs, the said GNPA ratio has been worked out without taking into account the impact of policy actions. Therefore, the actual movement of GNPAs of SCBs would depend on the extent to which eligible borrowers avail such policy interventions from the Central Government and RBI, which, in turn, facilitate revival of stressed accounts , “They said. , as quoted by PTI.
It was also informed that in pursuance of the announcement in the budget speech for the financial year 2021-22, a proposal to set up a special purpose vehicle for monetization of non-core assets (additional land and property) is under consideration of the Government.
(with agency input)
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