We welcome government’s progressive GST reforms: CMRI Kolkata
Kolkata's leading private medical hospital, CMRI, on Thursday welcomed the Indian government's announcement to exempt health insurance premiums from GST, eliminating the earlier 18% levy.
Speaking to IBNS, Sombrata Ray, Unit Head at CMRI Kolkata, said: "It's a great move. We welcome the government’s progressive GST reforms, which mark a significant step towards making healthcare more affordable and accessible for all."
He said the measures taken by the government will reduce the financial burden on patients and their families.
"The removal and reduction of GST on essential medicines, medical devices, and health insurance will directly ease the financial burden on patients and families," he said.
He further added: "At CK Birla Hospitals, Kolkata, our mission has always been to deliver high-quality, compassionate care. These reforms further empower us to ensure that advanced treatments, life-saving drugs, and preventive care become more accessible to a larger section of society. We are optimistic that such policy measures will accelerate India’s journey toward equitable and sustainable healthcare for all."
The Goods and Services Tax (GST) Council on Wednesday approved a sweeping overhaul of the indirect tax system, collapsing the existing four-rate structure into just two slabs.
The long-anticipated rationalisation—seen as a relief for the middle class—abolishes the 12% and 28% categories, leaving only the 5% and 18% slabs.
Relief on health insurance
The Council has exempted health insurance premiums from GST, eliminating the earlier 18% levy.
This is expected to increase coverage in a country where fewer than 20% of citizens have private health policies.
While widely welcomed by insurers and policyholders, several states flagged potential revenue losses.
The GST Council also removed Goods and Services Tax on individual life insurance policies as part of its wider overhaul of the indirect tax framework.
Under the revised structure, effective September 22, all individual health covers—including family floater plans and senior citizen policies—will also be exempt from GST.
This exemption will make purchasing health or life insurance more affordable for consumers.
"Many MPs questioned taxing insurance premiums. We'll make sure the benefits of insurance GST reforms are passed on to families and individuals," said Nirmala Sitharaman.
(Reporting by Supriyo Hazra)
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
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