Exempt GST on premium on Insurance for Senior Citizens: AIBEA

Exempt GST on premium on Insurance for Senior Citizens: AIBEA

Agency News

Hyderabad, Oct 8 : All India Bank Employees' Association (AIBEA) on Tuesday requested Union Finance Minister Nirmala Sitharaman to exempt Goods and Service Tax (GST) on premium on Group Medical Insurance Policy for retirees/Senior Citizens in the banking sector.

In a letter to Ms Sitharaman, Mr Ajay Bhushan Pandey, Revenue Secretary & Ex-Officio Secretary to GST Council and Dr Rajeev Ranjan, Special Secretary, GST Council, AIBEA General Secretary Ch Venkatachalam said in the Banking sector, for the past four years, a Group Medical Insurance Scheme is in operation both for the employees/officers who are in service, as well as for all the employees and officers who have retired from the Bank.

He said the premium on the Group Medical insurance Policy for the in-service employee/officers is being paid by the bank managements. In respect of retirees, the premium is annually paid by the concerned individual retiree in the month of October each year when the Group Policy is renewed from November each year.

You will be well aware that GST is being levied and collected on the premium paid for the medical insurance coverage, Mr Venkatachalam said. At present, upto Rs 3 lakh per year was covered for the retired workmen employees and Rs. 4 lakh for the retired officer staff.

In addition, there is an option for additional top up coverage amount of Rs 4 lakh and Rs 5 lakh. The retired employees are required to pay GST @ 18 % on the premium amount and you will kindly appreciate that the GST amount is quite a burden for these senior citizens who are getting a limited pension amount, the AIBEA General Secretary said.(UNI)