Mamata Banerjee’s Efforts Lead to Possible GST Changes on Insurance
West Bengal Chief Minister Mamata Banerjee announced that the state government’s persistent efforts have pressured the Central government to reconsider the 18% GST on health and life insurance products. This follows recommendations from the Group of Ministers (GoM) to exempt health insurance premiums up to Rs 5 lakh and term life insurance premiums. The GST Council will discuss this before a final decision is made.
Chief Minister Mamata had previously written to Union Finance Minister Nirmala Sitharaman, opposing the 18% GST on insurance policies and the withdrawal of tax deductions under sections 80C and 80D of the Income Tax Act. She emphasized that the GoM’s recommendation was due to pressure from the West Bengal government, not goodwill.
Mamata Banerjee stated that if the GST Council agrees to the changes, it will provide relief to millions of families. She assured that the government remains committed to prioritizing people’s interests and awaits the final decision.
Doubts Revealed
Mamata Banerjee -: Mamata Banerjee is the Chief Minister of West Bengal, a state in India. She is a prominent political leader and the head of the Trinamool Congress party.
GST -: GST stands for Goods and Services Tax. It is a tax system in India that combines several different taxes into one, making it easier to manage and understand.
Insurance -: Insurance is a way to protect yourself financially against unexpected events, like accidents or illnesses. You pay a small amount regularly, and if something happens, the insurance company helps cover the costs.
Group of Ministers -: The Group of Ministers is a team of ministers from different states in India who come together to discuss and make recommendations on specific issues, like taxes.
GST Council -: The GST Council is a group that includes the Finance Ministers of all Indian states and the Union Finance Minister. They meet to decide on important matters related to the GST, like tax rates and exemptions.
