Undoubtedly, the introduction of a single, unified tax reform has brought a major transformation in the Indian tax administration. The elimination of a number of indirect taxes has also made tax compliance easier for businesses and has helped in making many of the goods and services more affordable for the consumers. 

Of equal significance were those meaningful interventions to reduce the tax on certain areas such as  essential goods, food items and life-saving drugs. The reduced rate of 5% is a genuinely helpful step in the right direction.  In very similar lines, certain medicines are also extended a lower rate of 12% GST, which is another supportive gesture from the Union Government.  

However, GST charged on the entire spectrum of insurance services is unfortunately at the rate of 18% (9% + 9%). And this comprises a much-needed service of health insurance as well. Add to this the fact that a great lot of seniors in their evening years depend solely on health insurance for their health needs, especially the high-cost hospitalisations which they have to undergo, in their late years, with no-one to turn to, either from within the family or governmental support. 

Times have changed and the unsupported MAPL and APL geriatric population increasingly rely on meagre savings they create during their active career period for the benefit of their post retired life and management of health. With children mostly away, engaged in their own livelihood and jobs, a great lot of them are relying on the health insurance policies as a tool to protect them from increasing medical costs.

Many modern governments have implemented various strategies to deal with the medical expenses of the geriatric population, who typically require more healthcare services due to their age-related health conditions. Unfortunately in India we do not have any such systems available as on date. 

Even as the fact remains that the Indian Government has taken a few initiatives in the Healthcare sector for the common benefit of the aged, they pre-dominantly address the needs of the BPL sector and the retired government employees.  Excepting the rich and super-rich, the MAPL and APL population after contributing all that they could towards nation buildng (through taxes), are practically left in the lurch in their late years, when health becomes compromised, for most. 

Their only fall-back option of health insurance becomes increasingly costly, as the premium cost is linked to the factor of age. The premium cost, as of date, has shot up steeply, thanks to the heightened claims costs arising from the COVID pandemic, and its complications. An important element that adds to the cost proportionately is the GST factor, which escalates the cost by an additional high element of nearly 20%.  Of course, the health insurance costs offer a tax deduction benefit to the tax payers, but a huge proportion of the aged who do not have taxable income are not entitled to this benefit too.

This appeal is to make a deviation in GST rules confined purely to Medical/Health Insurance. The act of “NO GST” on the premium element of Medical policies for persons beyond the age of 60 can go a long way in helping the distressed geriatric population in India.  This would be an enormously helpful gesture to the seniors of India. 

It is my solemn submission that the cited request be considered in right earnest for the benefit of the elderly population of India whose means of income are limited and healthcare needs unlimited.