Summary of this article
The new decision will bring down the overall premium as the tax component has significantly come down. Additionally, improved affordability may encourage more households to purchase health cover, supporting broader financial inclusion goals.
As of FY2024, the government has collected Rs 16,398 crore from goods and services tax levied on healthcare and life insurance. Out of this, Rs 8,135 crore has been collected from life insurance and Rs 8,263 crore from health insurance. In addition to that, Rs 2,045 crore was also raised as GST from re-insurance on life and health insurance last fiscal, including Rs 561 crore from reinsurance on life and Rs 1,484 crore on health care, an NDTV report quoted.
