REQUEST FOR EXEMPTION FROM GST ON MEDICAL INSURANCE FOR SENIOR CITIZENS

Comrades,

Please find the uploaded letter of CBPRO. While we may try for relief for senior citizen retirees we have to try for complete elimination of GST for health insurance. GST is meant to be levied when I have received goods or service for my consumption. There is no logic in levying GST on any insurance because no service is given for my consumption on insurance until and unless a claim is made and settled. Insurance is just a promise to carry out a service (of risk coverage) in the event of a named contingency. So service arises only when the contingency happens. For instance, I enter into a building contract and I will have to pay GST only when the contract is performed and only to the extent performed but not on the mere signing of a contract. So also, insurance is a mere contract, an assurance. MERE ASSURANCE IS NOT SERVICE BUT ONLY ITS PERFORMANCE. We may mobilize public opinion which may yield results, if not now, atleast later. In the meanwhile CBPRO/AIBPARC may also write to UFBU, IBA and all banks to absorb GST as a humane gesture to senior citizen bank retirees.

Regards,

S B C Karunakaran

General Secretary

Letter to FM-GST