No recommendation from GST Council to provide Tax Incentive for MSMEs on group Health Insurance Premiums

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary has stated in response to a question raised in Lok Sabha that No recommendation from the GST Council to provide Tax Incentives or Waivers for MSMEs on group Health Insurance Premiums.

The MinisterSHRI SHAFI PARAMBIL, ADV. ADOOR PRAKASH and others asked the question in Lok Sabha:

Will the Minister of FINANCE be pleased to state:

(a) the current status and extent of group health insurance coverage among Micro, Small, and Medium Enterprises (MSMEs) in India;

(b) the number of MSMEs currently availing group health insurance for their employees; and

(c) whether the Government have any plans to provide tax incentives or waivers for MSMEs on group health insurance premiums and if so, the details thereof?

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary replied:

(a) to (c): As per the latest available IRDAI annual report, General and Health Insurance Companies covered 19.94 crores of lives under 6.50 lakhs Group health insurance policies during FY 2022-23. Further, the insurance policy level data pertaining to any specific segment such as MSMEs is not collected or compiled by IRDAI.

GST rates and exemptions are prescribed on the recommendations of the GST Council, which is a constitutional body comprising of representatives from both the Centre and the States/UTs. There is no recommendation from the GST Council to provide tax incentives or waivers for MSMEs on group health insurance premiums.