Authors
Vasudha noticed the growing problem of mis/disinformation online after studying New Media at ACJ in Chennai and became interested in separating facts from fiction. She is interested in learning how global issues affect individuals on a micro level. Before joining Newschecker’s English team, she was working with Latestly.
Pankaj Menon is a fact-checker based out of Delhi who enjoys ‘digital sleuthing’ and calling out misinformation. He has completed his MA in International Relations from Madras University and has worked with organisations like NDTV, Times Now and Deccan Chronicle online in the past.
Claim
The GST Council has reduced the GST rate on health insurance premium from 18% to 5%.
Newschecker received the claim on our WhatsApp tipline (+91- 9999499044) requesting to be fact checked
Such posts can be seen here, here and here.
Fact
We noticed that such posts have been available on social media platforms from at least September 7. The most recent GST Council meet was, however, held on September 9, 2024, raising our doubts.
A Google keyword search for “health insurance,” and “GST reduction” did not yield any credible reports stating that such a decision has been announced by the council. The GST Council has, however, set up a GoM (Group of Ministers) to review the 18% GST on health, life insurance premiums, reported The Hindu.
Union Finance Minister Nirmala Sitharaman said the matter was discussed extensively with State Ministers and a lot of questions arose, including on whether the tax rate should be reduced or the GST levy scrapped altogether, who should be exempted if at all, and how group insurance policies might be treated, added the report.
“That is why we decided there is a need for a rigorous review and it might be worth a GoM to look into these issues quickly [by the end of October], and the GST Council, which will meet again in November, could take a call on it ,” Sitharaman was quoted as saying.
We then scanned through a press release by the Central Board Of Indirect Taxes & Customs (CBIC) on the 54th GST Council meet. “GST Council recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on the life insurance and health insurance. The GoM members are Bihar, UP, West Bengal, Karnataka, Kerala , Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat. The GoM is to submit the report by the end of October 2024,” it stated.
Notably, the Council decided to reduce the GST rate on cancer drugs, namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab, from 12% to 5% in the recent meeting.
The Nitin Gadkari Angle
Few users “thanked” Union Minister Nitin Gadkari for the alleged reduction in GST rates on health insurance premium. We found that Gadkari reportedly wrote to Sitharaman seeking withdrawal of 18% GST on life and medical insurance premium.
“Levying GST on life insurance premium amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life’s uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk,” he said in a letter.
Hence, we can conclude that the GST on health insurance premium has not been slashed by the Council so far. A GoM has been set up to review the rate on health/life insurance premiums.
Also Read: AI-Generated Image Of Algerian Boxer Imane Khelif As A Man Goes Viral
Result: False
Sources
Report By The Hindu, Dated September 10, 2024
Press Release By CBIC, Dated September 9, 2024
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Authors
Vasudha noticed the growing problem of mis/disinformation online after studying New Media at ACJ in Chennai and became interested in separating facts from fiction. She is interested in learning how global issues affect individuals on a micro level. Before joining Newschecker’s English team, she was working with Latestly.
Pankaj Menon is a fact-checker based out of Delhi who enjoys ‘digital sleuthing’ and calling out misinformation. He has completed his MA in International Relations from Madras University and has worked with organisations like NDTV, Times Now and Deccan Chronicle online in the past.
