Mamata Banerjee's Pressure Tactics Force GST Policy Rethink on Insurance

West Bengal CM Mamata Banerjee claims victory as persistent state efforts push the central government to reconsider the 18% GST on health and life insurance. The Group of Ministers has recommended exemptions, awaiting final decisions by the GST Council, offering potential relief to many families.

West Bengal Chief Minister Mamata Banerjee declared on Sunday that the persistent efforts of her state government have pressured the BJP-led Central government to reconsider the controversial 18 percent GST on health and life insurance products. She suggests possible modifications or even withdrawal of the tax.

The statement follows a recommendation from the Group of Ministers (GoM) on GST rate rationalization, which met on Saturday. The GoM advised exempting health insurance premiums up to Rs 5 lakh and term life insurance premiums. Sources indicated that state representatives broadly supported lifting GST from these premiums. The GST Council will now deliberate the matter before making a final decision.

Mamata Banerjee had previously written to Union Finance Minister Nirmala Sitharaman in August, arguing against the 18 percent GST imposition on these insurance policies, as well as the removal of tax deductions in the new regime. She criticized the decision, warning it could discourage vulnerable individuals from securing necessary insurance coverage.

The Chief Minister pointed out that the GoM's recommendation wasn't an act of goodwill but was born from relentless pressure from West Bengal. She credited her state leaders for standing firm against what she described as anti-people policies, which threaten public welfare. Her officials have consistently campaigned for these changes during GoM meetings.

Mamata expressed hope that the GST Council will ultimately withdraw the tax, which would provide essential relief to millions of families nationwide. While eagerly awaiting the Council's final decision, she reaffirmed her government's commitment to prioritize people's interests in all policy considerations.

(With inputs from agencies.)